The SEC clarifies for the first time that certain Bitcoin mining models may be considered securities.
Specifically, Bitcoin mining services through third parties.
🔸 The US SEC has filed a lawsuit against the founder of Bitcoin mining company VBit, accusing them of offering unregistered securities through a Bitcoin mining service model.
🔸 In addition to selling mining machines, VBit provides hosting services, where customers buy a “benefit share” in the company's mining operations and receive Bitcoin periodically, while all mining equipment is operated and controlled by VBit.
🔸 The SEC believes this model causes investors to expect profits based on the efforts of a third party (VBit), meeting the criteria of securities under US law.
🔸 The agency also accuses the founder of misleading investors, as the actual number of mining machines is insufficient compared to the service contracts sold, causing significant losses to many customers.
🔸 The SEC further alleges that the founder embezzled $48.5 million of customer funds, used to buy crypto, gamble, and spend extravagantly on family. #Gate2025AnnualReportComing
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The SEC clarifies for the first time that certain Bitcoin mining models may be considered securities.
Specifically, Bitcoin mining services through third parties.
🔸 The US SEC has filed a lawsuit against the founder of Bitcoin mining company VBit, accusing them of offering unregistered securities through a Bitcoin mining service model.
🔸 In addition to selling mining machines, VBit provides hosting services, where customers buy a “benefit share” in the company's mining operations and receive Bitcoin periodically, while all mining equipment is operated and controlled by VBit.
🔸 The SEC believes this model causes investors to expect profits based on the efforts of a third party (VBit), meeting the criteria of securities under US law.
🔸 The agency also accuses the founder of misleading investors, as the actual number of mining machines is insufficient compared to the service contracts sold, causing significant losses to many customers.
🔸 The SEC further alleges that the founder embezzled $48.5 million of customer funds, used to buy crypto, gamble, and spend extravagantly on family.
#Gate2025AnnualReportComing