In a significant enforcement action, the U.S. Securities and Exchange Commission (SEC) has filed charges against Danh C. Vo, the founder and CEO of Bitcoin mining company VBit Technologies Corp., for allegedly orchestrating a massive $48.5 million fraud scheme. The complaint, filed on December 18, 2025, in the U.S. District Court for the District of Delaware, accuses Vo of misappropriating investor funds and selling unregistered securities.
The SEC alleges that Vo and VBit raised over $95.6 million from approximately 6,400 investors through misleading representations about their Bitcoin mining operations. The company offered investors two options: purchasing mining rigs directly or entering into "hosting agreements" that promised passive profits from mining rigs operated by VBit. Most customers chose the hosting agreements.
The core of the fraud, according to the SEC, was that VBit sold hosting agreements for far more mining rigs than it actually operated. Vo allegedly knew, or was reckless in not knowing, that the company did not manage enough mining rigs to fulfill the agreements sold to investors. The SEC asserts that Vo had ultimate authority over the company and directed the misleading information posted on its website and in promotional materials.
The complaint details that Vo misappropriated approximately $48.5 million of the raised funds. He allegedly diverted $5 million to family members and his ex-wife (who are also named as defendants) and used other portions for personal gambling and gifts. In November 2021, Vo, a former Philadelphia resident, filed for divorce and left the United States with the remaining misappropriated funds.
The SEC has charged Vo with violations involving the unregistered offer and sale of securities and fraud. The commission argues the hosting agreements constituted securities because investors were led to expect profits derived from the efforts of third parties (VBit).
VBit's operations have since ceased. The company was acquired by Advanced Mining Group in 2022 but is now defunct. This case is viewed as a watershed moment, signaling increased regulatory scrutiny on cryptocurrency mining operations seeking investor capital and a clear warning about the enforcement of securities registration requirements in the crypto space.
