Bitcoin mining company executive charged with embezzling $48.5 million, SEC exposes false advertising tactics

【Blockchain Rhythm】Another major case has emerged in the Bitcoin mining sector. The U.S. Securities and Exchange Commission (SEC) recently filed a lawsuit against Danh C. Vo, founder and CEO of VBit Technologies, accusing him of embezzling nearly $48.5 million in investment funds. The money ultimately flowed into gambling and family gift expenses—classic misappropriation of duties.

According to the complaint filed with the District Court of Delaware, Vo and his company raised over $95.6 million from approximately 6,400 investors. The SEC’s charges list a host of allegations: false statements about business operations, concealment of the true use of funds, essentially playing tricks on investors.

What’s even more heartbreaking are the so-called “one-stop solutions” promised. Vo once promoted to ordinary investors that VBit could free them from the hassle of mining, allowing them to earn passive income through Bitcoin mining just by lying back. This seemingly attractive promise is viewed by the SEC as outright fraud—because he had no real intention of using the money for mining operations.

This case once again reminds us: whether it’s mining, DeFi, or other crypto projects, always be cautious of projects promising excessively high returns with overly simple models. Do thorough research before investing, and don’t let the “passive income dream” cloud your judgment.