BitDigital in the middle of a scandal!
Large companies working in the mining industry regularly fall victim to class action lawsuits. Many enterprises are repeatedly involved in litigation. But today we will talk about a fairly young company Bit Digital, which also became a defendant in a lawsuit. Next, we will look at who is opposed to the platform and how significant the charges are. So let’s get started.
What is known about the company
First, you need to consider the theoretical information available about the company. We understand that BitDigital is a highly targeted service that is used by a limited number of miners. Nevertheless, the example of the company is very indicative and definitely needs detailed analysis. This firm is engaged in the mining of cryptocurrencies at an industrial level. This enterprise has at its disposal a fairly large amount of equipment, which allows the company to quietly mine new coins and delight its own investors. The company’s internal token is traded on the Nashdaq exchange, which is highly regarded in Asia.
That is, as you can imagine, BitDigital’s reputation is flawless. Before us is a quite respectable company, which, however, became a defendant in the trial. Today it became known that disgruntled investors have filed a class action lawsuit in a New York court. Anthony Powels and his colleagues accuse the firm of falsifying information and delaying payments. The result is significant financial damage and a demand for every dollar lost. The compensation amount is 21 thousand dollars only for Anthony. The damage suffered by his colleagues is not yet known. As well as the very fact of damage. The latter can be said with confidence only after the conclusion of the court.
How does BitDigital react?
It should be noted that representatives of the organization responded extremely harshly to criticism. According to them, the traders themselves, and not the company, are to blame for the loss of funds. The organization’s representatives also emphasize that all financial documentation is posted on the official website of the US Securities Commission. Nevertheless, representatives of the firm have met a counter-argument, they are accused of allegedly having access to the published data. It is not yet clear how exactly the firm’s representatives manage to change the information without the knowledge of the SEC.
However, the fact of dissatisfaction exists. In the course of the upcoming trial, it is necessary to find out whether the company is really to blame for the losses of investors. It is quite possible that the reason for the loss of funds will be the banal carelessness of shareholders. This is a matter of a short time. However, the case is exceptional. He shows that companies, even with an unconditional reputation, can become involved in not the most pleasant business.
The community also responded immediately to this news. The company’s shares plummeted by more than 25% of their original value. At the time of this writing, the cost has leveled off somewhat, but it is still far from the best indicators. Of course, even if BitDigital wins the lawsuit, the damage to its reputation cannot be fixed. Well, if the truth turns out to be on the side of the victims, one can only sympathize with the company’s reputation. All clients of the organization should keep an eye on developments for now. If you are worried about purchased shares, sell some of the securities. It is not known how long the litigation will take. The main thing in such a difficult situation is to follow the news of the cryptoindustry. Stay tuned, because we publish only high-quality, interesting material. Thanks for attention. Good luck!