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Hut 8's Top Investors Given Chance to Spearhead Class Action Lawsuit

Finance Magnates

Cryptocoins News / Finance Magnates 22 Views

Hut 8's investors who incurred significant losses due to alleged securities fraud have the opportunity to lead a class action lawsuit against the firm. The period in question spans from November 9, 2023, to January 18, 2024, during which Hut 8 Corp. is accused of withholding crucial information from investors.

Investors' Claims

According to the complaint, Hut 8 failed to disclose vital information to its investors. The company allegedly concealed the fact that one of its largest shareholders is an undisclosed related party.

Furthermore, there are claims that Hut 8 Corp.'s core asset has a history of failing to provide energy and high-speed internet as promised. Additionally, the profitability of certain assets is alleged to have been overstated by the company.

In part, the statement shared by Glancy Prongay & Murray LLP read: "Throughout the Class Period, Defendants failed to disclose to investors: (1) that one of USBTC's largest shareholders is an undisclosed related party; (2) that USBTC's core asset has historically failed to provide energy and high-speed internet."

"(3) that the profitability of certain USBTCassets was overstated; and (4) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis." Finance Magnates contacted Hut 8 for comment and will update this story once we receive feedback from the company.

Hut 8's Strategic Restructuring

Last month, HUT 8 announced a significant transition in its leadership following a merger between Hut 8 Corp. and US Bitcoin Corp. Asher Genoot, previously the President and a Board member, assumed the role of Chief Executive Officer, succeeding Jaime Leverton.

Genoot has a wealth of experience from his previous role as the President of US Bitcoin Corp, a venture-backed private Bitcoin mining company. His track record includes overseeing a 730 MW portfolio across data centers in Texas, Nebraska, and New York.

Headquartered in Miami, Florida, Hut 8 Corp. focuses on Bitcoin mining, managed services, energy arbitrage, and traditional data center operations. The company's diverse portfolio includes computing data centers in British Columbia and Ontario and Bitcoin mining and hosting sites across Alberta, New York, Nebraska, and Texas. Last year, the firm faced a substantial decrease in revenue due to operational challenges, such as increased network difficulties and electrical issues.

This article was written by Jared Kirui at
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