SEC Exposes VBit Founder Danh C. Vo: Tens of Millions Misused After $96M Bitcoin Mining Fundraise

Another crypto founder faces the music. The SEC just dropped the hammer.

The Pitch vs. The Payout

Investors were sold a dream of industrial-scale Bitcoin mining—a slice of the digital gold rush. The reality? Funds meant for rigs and warehouses got rerouted. Tens of millions vanished from the nearly $96 million pot.

Where the Money Went

Regulators allege the capital took a detour. Think personal real estate and other ventures far removed from the promised hashrate. It's the oldest trick in the finance book: raise money for a shiny, complex asset nobody fully understands, then treat the treasury like a personal slush fund.

The Regulatory Reckoning

The SEC's complaint paints a classic picture of deception. Offering documents promised one thing; bank statements showed another. It's a stark reminder that in crypto's wild west, due diligence isn't optional—it's survival.

The case lands as the industry begs for legitimacy. Every story like this gives skeptics more ammunition, proving that sometimes, the most profitable mine isn't for Bitcoin—it's for investor gullibility.

Why is VBit’s CEO facing SEC charges?

VBit marketed itself as offering investors “a turnkey solution for average people to start making a passive income stream through Bitcoin mining without all the headaches of operating the machines,” according to the SEC complaint.

It gave investors the options of purchasing mining rigs directly or entering into hosting agreements, with most opting for the latter arrangement that promised passive profits without having to physically deal with the technical complexities of operating a mining rig.

The hosting packages were Bronze, Silver, Gold, Platinum, Diamond, and Black Diamond tiers, with the top-tier package valued at $113,908, covering eight mining rigs.

The SEC has classified these hosting agreements as unregistered securities, adding that investors expected profits derived primarily from the efforts of third parties.

As founder and CEO, Vo “had ultimate authority over the entire company and directed the information posted on the company’s website, in promotional materials, and what was reflected in investors’ online accounts,” regulators said.

The classification brings VBit’s operations under securities law jurisdiction, exposing Vo to charges of violating provisions of both the Securities Act and Securities Exchange Act.

Where did all the money go?

Prior to federal action, multiple state regulators had taken enforcement measures against VBit. California’s Department of Financial Protection and Innovation issued a desist and refrain order in January 2024 after determining that the scheme affected at least 1,016 state residents.

Washington’s Department of Financial Institutions fined VBit $15,000 in July 2022 while also ordering it to pay back the $156,000 of bitcoin mining packages it sold to approximately 82 residents of the state.

In September 2023, the Montana Commissioner of Securities and Insurance (CSI) “ordered VBit to cease offering or selling unregistered securities in the state and to pay a $180,000 fine and restitution to three known Montana victims.”

What will happen to VBit’s Vo now?

In January 2022, VBit announced that it had been acquired by Advanced Mining Group, an Asian-based company primarily focused on Bitcoin mining, in a deal worth $105 million.

However, according to the SEC, “Advanced Mining did not exist as a legitimate business prior to the ‘acquisition’ of VBit” and neither it nor VBit registered or attempted to register with the Commission on the offering of securities under the Securities Act.

Advanced Mining, which appeared to serve as a brief reboot of VBit’s operations under new branding, collapsed within weeks of the acquisition. The Bitcoin mining firm is now defunct, the SEC confirmed.

The SEC seeks permanent injunctions against Vo, disgorgement with prejudgment interest, civil monetary penalties, and a bar preventing him from serving as an officer or director of any public company.

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