The company Bitfarms, engaged in Bitcoin mining, found itself at the center of a scandal following a class-action lawsuit filed by Pomerantz LLP on May 9, 2025. The lawsuit accuses Bitfarms of improper accounting of capital raising operations and misleading shareholders. In particular, it is claimed that the company concealed accounting errors in the sale of digital assets, which affected its financial reporting.
This news has already negatively affected Bitfarms' shares: on December 10, 2024, their price fell by 6%, reaching $2.01. Investors are concerned, as such accounting violations may indicate deeper issues in the company's management. Bitfarms, which operates 11 mining farms, also reported adjustments to its financial statements, which only increased distrust.
This lawsuit could impact trust in the crypto industry as a whole, especially in light of the recent SEC statement about moving towards clearer regulation. Bitfarms will need to carefully rectify the situation to maintain its reputation and stability.
