VBit CEO Accused of Embezzling $48.5 Million – Funds Allegedly Spent on Gambling and Family Gifts

The U.S. Securities and Exchange Commission (SEC) has launched another crackdown on fraudulent activity in the crypto industry. This time, it’s targeting Dan C. Vo – the CEO of the now-defunct Bitcoin mining company VBit Technologies. According to the lawsuit, Vo embezzled $48.5 million from investors, some of which was allegedly used for gambling and personal family expenses. The complaint was filed on December 17, 2025, in the U.S. District Court for the District of Delaware.

Raised Over $95 Million – But Mining Was Mostly Fictional From December 2018 to February 2022, VBit raised more than $95.6 million from around 6,400 investors. The company promised “passive income” through Bitcoin mining with no technical headaches. But in reality, Vo allegedly sold hosting contracts for far more mining equipment than the company actually operated. Investors could choose from six “mining hosting packages,” with the top-tier plan costing over $113,000. These packages promised returns without direct involvement, but the SEC classified them as unregistered securities. According to the complaint, investors were reliant on the efforts of third parties to generate profit.

VBit Faced State Sanctions Before Federal Action Before the SEC’s intervention, several U.S. states had already taken enforcement actions: 🔹 California – Cease and desist order issued in January 2024, affecting over 1,000 residents

🔹 Washington – $15,000 fine and refund orders totaling $156,000

🔹 Montana – $180,000 penalty and restitution to three known victims

Fake Acquisition and a Fast Collapse In January 2022, VBit announced it had been acquired by Advanced Mining Group for $105 million. However, the SEC alleges that Advanced Mining didn’t exist as a legitimate business before the “acquisition.” Neither VBit nor Advanced Mining registered any securities with the SEC, nor did they attempt to. The rebranded operation collapsed just weeks after the acquisition, and VBit completely vanished from the crypto scene.

SEC Seeks Heavy Penalties for Vo The Securities and Exchange Commission is now demanding: 🔹 A permanent ban on Vo serving as an officer or director of any public company

🔹 Full disgorgement of misappropriated funds, with interest

🔹 Civil monetary penalties

🔹 Court orders preventing future violations of securities laws Whether Dan C. Vo will stand trial remains to be seen. One thing is clear – the crypto space continues to be fertile ground for both innovation and multi-million dollar fraud.

#CryptoFraud , #Bitcoinmining , #Cryptoscam , #DigitalAssets , #CryptoRegulation

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