The US Securities and Exchange Commission (SEC) has charged Danh C. Vo, founder and chief executive officer of defunct Bitcoin mining company VBit Technologies, with misappropriating $48.5 million from investors and using portions of the funds for gambling and family gifts.
The complaint was filed on Wednesday, December 17, 2025, in the US District Court for the District of Delaware.
Vo reportedly raised over $95.6 million from roughly 6,400 investors between December 2018 and February 2022 before closing shop later that year.
The SEC alleges that Vo deceived investors by selling hosting agreements for substantially more mining rigs than VBit actually operated.
Why is VBit’s CEO facing SEC charges?
VBit marketed itself as offering investors “a turnkey solution for average people to start making a passive income stream through Bitcoin mining without all the headaches of operating the machines,” according to the SEC complaint.
It gave investors the options of purchasing mining rigs directly or entering into hosting agreements, with most opting for the latter arrangement that promised passive profits without having to physically deal with the technical complexities of operating a mining rig.
The hosting packages were Bronze, Silver, Gold, Platinum, Diamond, and Black Diamond tiers, with the top-tier package valued at $113,908, covering eight mining rigs.
The SEC has classified these hosting agreements as unregistered securities, adding that investors expected profits derived primarily from the efforts of third parties.
As founder and CEO, Vo “had ultimate authority over the entire company and directed the information posted on the company’s website, in promotional materials, and what was reflected in investors’ online accounts,” regulators said.
The classification brings VBit’s operations under securities law jurisdiction, exposing Vo to charges of violating provisions of both the Securities Act and Securities Exchange Act.
Where did all the money go?
Prior to federal action, multiple state regulators had taken enforcement measures against VBit. California’s Department of Financial Protection and Innovation issued a desist and refrain order in January 2024 after determining that the scheme affected at least 1,016 state residents.
Washington’s Department of Financial Institutions fined VBit $15,000 in July 2022 while also ordering it to pay back the $156,000 of Bitcoin mining packages it sold to approximately 82 residents of the state.
In September 2023, the Montana Commissioner of Securities and Insurance (CSI) “ordered VBit to cease offering or selling unregistered securities in the state and to pay a $180,000 fine and restitution to three known Montana victims.”
What will happen to VBit’s Vo now?
In January 2022, VBit announced that it had been acquired by Advanced Mining Group, an Asian-based company primarily focused on Bitcoin mining, in a deal worth $105 million.
However, according to the SEC, “Advanced Mining did not exist as a legitimate business prior to the ‘acquisition’ of VBit” and neither it nor VBit registered or attempted to register with the Commission on the offering of securities under the Securities Act.
Advanced Mining, which appeared to serve as a brief reboot of VBit’s operations under new branding, collapsed within weeks of the acquisition. The Bitcoin mining firm is now defunct, the SEC confirmed.
The SEC seeks permanent injunctions against Vo, disgorgement with prejudgment interest, civil monetary penalties, and a bar preventing him from serving as an officer or director of any public company.
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