The post Bitcoin Mining Firm Rhodium Faces Class Action Lawsuit Amid Fraud Allegations and Bankruptcy appeared on BitcoinEthereumNews.com.

On December 15, COINOTAG reported on a significant legal development in the cryptocurrency sector. A consortium of investors has initiated a class action lawsuit against the founder of Rhodium Enterprises, a notable Bitcoin mining firm based in Texas. The lawsuit, orchestrated by Iacuone McAllister Potter’s legal team, accuses the defendants—including executives from Rhodium and Fort Worth’s Imperium Investments Holdings, LLC—of fraudulent practices. Allegations include the intentional misrepresentation of pivotal information that misled investors into committing approximately $33 million. This legal maneuver, lodged in Tarrant County District Court, asserts that the defending parties engaged in deceptive practices that facilitated their financial gain at the expense of investors. The prosecution claims that crucial details regarding Rhodium’s impending sale to competitor Riot Blockchain were deliberately withheld, thereby creating an untenable conflict over essential power contracts. Earlier this year, Rhodium Enterprises filed for Chapter 11 bankruptcy, revealing liabilities estimated between $50 million to $100 million, while total assets are projected to fall within the $100 million to $500 million range. Source: https://en.coinotag.com/breakingnews/bitcoin-mining-firm-rhodium-faces-class-action-lawsuit-amid-fraud-allegations-and-bankruptcy/

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Filed under: News - @ December 15, 2024 2:18 am