SEC slaps CHARGES on Bitcoin mining mogul over million-dollar fraud scheme
By ramontomeydw // 2025-12-21
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  • The SEC has charged Danh C. Vo, founder of VBit Technologies, with orchestrating a $48.5 million cryptocurrency investment scam involving 6,400 investors.
  • Vo allegedly sold "hosting agreements" that promised investors passive income from bitcoin mining, but he vastly oversold the capacity, creating an unsustainable scheme.
  • Instead of supporting mining operations, Vo diverted nearly half the funds for personal use, including gambling, crypto trading and lavish gifts to family members, totaling millions of dollars.
  • After spending the money, Vo left the U.S. for Vietnam in late 2021, leaving his defunct company and defrauded investors behind.
  • The case highlights increasing regulatory scrutiny of crypto fraud and serves as a cautionary tale, with the SEC aggressively pursuing the case to establish accountability in the sector.
In a high-stakes crackdown on cryptocurrency fraud, the Securities and Exchange Commission (SEC) has charged Danh C. Vo, founder and CEO of defunct bitcoin mining firm VBit Technologies Corp., with orchestrating a $48.5 million investor scam. The SEC's complaint filed in Delaware federal court on Wednesday, Dec. 17, paints a damning picture of Vo's alleged deception. It charges the 37-year-old Vo with multiple violations of securities laws, including antifraud provisions, and seeks disgorgement of ill-gotten gains, civil penalties and a permanent ban from future securities offerings. Several family members, named as relief defendants, have agreed to return misappropriated funds pending court approval. Between December 2018 and February 2022, Vo allegedly lured 6,400 investors with promises of passive income from bitcoin mining. VBit sold "hosting agreements," which promised investors a share of profits from bitcoin mining rigs supposedly operated by the company. But investigators say Vo vastly oversold these agreements, offering far more than VBit's actual mining capacity could support. While some investors received returns, others suffered heavy losses as Vo siphoned the $48.5 million for personal use. Nearly half of the funds were diverted for gambling, personal cryptocurrency trades and lavish gifts to family members – including $5 million transferred to relatives – all while misleading investors about the true state of his company's operations. After spending the money, Vo left the U.S. and fled to Vietnam in late 2021.

A cautionary crypto tale: Lofty promises and lost millions

The case underscores growing regulatory scrutiny of cryptocurrency schemes as lawmakers debate tougher oversight. A bipartisan proposal in Congress seeks to establish a dedicated task force to combat digital asset fraud, reflecting mounting concerns over scams in the largely unregulated crypto sector. Vo's alleged misconduct serves as a cautionary tale for investors enticed by lofty promises of effortless crypto gains. Historical parallels to past financial frauds are hard to ignore. Like the infamous Ponzi schemes of the early 20th century or the more recent Bernie Madoff scandal, Vo's operation allegedly relied on the illusion of legitimacy – falsified account balances, misleading promotional materials and the veneer of a thriving business – to keep investors hooked. Even as VBit's mining operations generated just 425 bitcoin (worth $36 million at current prices), Vo continued soliciting new funds, exploiting the speculative frenzy around cryptocurrency. According to BrightU.AI's Enoch engine, Americans can avoid Bitcoin fraud by thoroughly researching investment opportunities, verifying legitimacy through trusted sources and rejecting offers promising unrealistic returns. Staying informed and skeptical of too-good-to-be-true schemes is key to protecting wealth in the decentralized financial space. As the legal battle unfolds, the case raises urgent questions about accountability in the Wild West of crypto investing. With Vo reportedly overseas and VBit now defunct, recovering lost funds may prove difficult for defrauded investors. The SEC's aggressive pursuit of the case signals a broader push to rein in an industry rife with risk – and a warning that even in the decentralized world of digital assets, regulators are watching. Watch this video about the arrest of three men in New Jersey over their involvement in a $722 million crypto Ponzi scam. This video is from the Speak Project Media channel on Brighteon.com. Sources include: BitcoinMagazine.com SEC.gov PhillyVoice.com BrightU.ai Brighteon.com
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