The collapsed VBit Applied sciences Ponzi scheme has obtained a desist and chorus order from California’s Division of Monetary Safety and Innovation (DFPI).
VBit Applied sciences related corporations cited by the DFPI of their January thirty first order embrace:
- VBit Applied sciences Corp, a Delaware shell firm working from the defunct area “vbittech.com”;
- VBit Mining LLC, a Delaware shell firm working from the defunct area “vbitmining.com”;
- VBit DC Corp., a Delaware shell firm; and
- Superior Mining Corp, working from the defunct area “advancedmining.com”
People named in DFPI’s order are:
- Don Vo (aka Danh Vo), founder and CEO of VBit Know-how, Vbit Mining and VBit DC and
- Sean Tu, CTO of VBit Applied sciences, VBit Mining, Vbit DC and Superior Mining
Following an inner investigation, DFPI claims VBit Applied sciences solicited funding from “not less than 1016 California residents”.
Vbit Applied sciences, to not be confused with not too long ago launched Vbit Restricted rip-off, was a typical MLM crypto Ponzi scheme launched in 2018.
VBit Applied sciences’ Ponzi ruse of selection was cryptocurrency mining.
VBit’s mining packages consisted of specialised Bitcoin mining {hardware} and “internet hosting” companies, which enabled clients with little or no technical experience in Bitcoin mining to depend on VBit’s mining specialists.
The Ponzi scheme collapsed in June 2022, at which period VBit Applied sciences pulled a “regulators!” exit-scam.
On or round June 2022, VBit knowledgeable its traders that it might not function in america. VBit said in an e-mail that it “stopped all gross sales and withdrawals due to a possible pending settlement with the US SEC.”
Traders have been frozen out of their accounts and unable to withdraw their funds.
Superior Mining was launched as a VBit Applied sciences Ponzi reboot. It lasted just a few weeks earlier than pulling a “COVID-19!” exit-scam.
Underneath Californian regulation, DFPI classifies VBit Applied sciences’ funding scheme as a safety.
VBit collected investments starting from $50,000 to $150,000 from California traders.
These securities had been supplied and offered on this State in issuer transactions. The Commissioner has not issued a allow or different type of qualification authorizing any particular person to supply or promote these securities on this State.
Primarily based on the foregoing findings, the Commissioner is of the opinion that the securities supplied and offered within the type of funding contracts by VBit Applied sciences Corp., VBit Mining LLC, VBit DC Corp., and Superior Mining Group are topic to qualification beneath the CSL and have been or are being supplied or offered with out first being certified in violation of Firms Code part 25110.
On account of the Commissioner’s findings, VBit Applied sciences has been ordered to desist and chorus from committing additional acts of securities fraud in California.
Along with California, Montana’s Fee of Securities and Insurance coverage additionally took regulatory motion in opposition to VBit Applied sciences in February 2023.
Following VBit Applied sciences’ collapse, Danh Vo marked his LinkedIn profile “retired for all times” and disappeared.
Whether or not VBit Applied sciences and Vo are beneath investigation on the federal stage stays unclear.