SEC charges VBit founder with misappropriating $48.5 million

The U.S. Securities and Exchange Commission has charged Danh C. Vo, founder and CEO of bitcoin mining firm VBit, accusing him of misappropriating $48.5 million from investors and spending part of the funds on gambling and gifts for family members.

According to the SEC, Vo and VBit raised more than $95.6 million from about 6,400 investors while misleading them about how the mining business operated and how investor funds would be used. The agency said VBit sold hosting agreements for far more mining rigs than it was actually operating, leading investors to expect passive profits that never materialized.

The SEC also alleged that Vo sent $5 million to family members and his ex-wife, then left the U.S. in 2021. Vo faces charges related to fraud and the unregistered offer and sale of securities, and VBit is now defunct.