SEC Targets Bitcoin Mining Service in Securities Fraud Case
Update: 2025-12-19
Description
The SEC files a lawsuit against Bitcoin mining service VBit, alleging fraud and misuse of investor funds. The agency claims VBits hosting agreements are securities, meeting the Howey test criteria, as investors expected passive income and relied on VBits efforts. The SEC argues VBits operation deviated from industry standards, pooling hashrate and lacking transparency. However, industry executives like Mitchell Askew disagree, stating legitimate hosted Bitcoin mining doesnt involve pooling capital or profit-sharing. This case could set a precedent for cryptocurrency service regulation.
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