Catenaa, Thursday, December 25, 2025-The U.S. Securities and Exchange Commission has filed a lawsuit against Bitcoin mining firm VBit, alleging its third-party hosting service qualifies as an unregistered securities offering.
The complaint targets founder Danh C. Vo of Philadelphia for allegedly misusing $48.5 million of customer funds and misleading investors about the company’s operations.
VBit sold mining rigs and offered a hosting service where customers bought stakes in mining operations while VBit controlled the rigs.
Customers received Bitcoin payouts proportional to the computing power purchased. The SEC claims investors relied on VBit’s management to generate profits, meeting the definition of a securities offering.
The regulator also alleges Vo failed to operate enough mining rigs to match sold hosting agreements, resulting in substantial investor losses. Funds were reportedly diverted to crypto purchases, gambling, and gifts for family members.
This case continues an investigation initiated in 2021, bridging regulatory priorities from the Biden-era SEC into the Trump administration.
Unlike other crypto investigations dismissed under new leadership, the Trump SEC is pursuing litigation, reflecting selective enforcement despite a generally more permissive regulatory approach to digital assets.
The lawsuit arrives amid growing concern among U.S. lawmakers about crypto-related scams. Bipartisan legislation has been proposed to establish a federal task force tasked with identifying and combating fraudulent digital asset schemes.
