Hagens Berman urges investors in Bit Digital, Inc. (NASDAQ: BTBT) with significant losses to submit their losses now. A securities fraud class action has been filed and certain investors may have valuable claims.
Bit Digital, Inc. (BTBT) Securities Fraud Class Action:
The complaint centers on whether Defendants misled crytpocurrency investors about Bit Digital’s business operations and prospects by concealing that the company exaggerated its bitcoin mining operation.
Investors began to learn the truth, according to the complaint, on Jan. 11, 2021, when market analyst J Capital Research issued a scathing report about the company, concluding that Bit Digital operates “a fake crypto currency business” “designed to steal funds from investors.”
According to J Capital, “[t]he company reported at end Q3 2020 that it was operating 22,869 bitcoin miners in China,” but that “is simply not possible” and “[w]e verified with local governments supposedly hosting the BTBT mining operation that there are no bitcoin miners there.”
In response, the price of Bit Digital shares crashed lower.
“We’re focused on investor losses and proving Bit Digital faked its business by falsely portraying itself as a player in bitcoin mining,” said Reed Kathrein, the Hagens Berman partner leading the investigation.