The SEC has filed a civil fraud lawsuit in opposition to the founding father of VBit Restricted and Superior Mining Group.
The SEC’s lawsuit was filed on December seventeenth and names Danh C. Vo, aka Don Vo, as the first defendant. Phuong D. Vo, My Tien Thi Nguyen and Diem T. Vo are named aid defendants.
VBit Restricted was an MLM crypto Ponzi launched by CEO Danh Vo in mid 2023.
Vbit Applied sciences, to not be confused with Vbit Restricted rip-off, was a typical MLM crypto Ponzi launched in 2018.
VBit Applied sciences’ Ponzi ruse of selection was cryptocurrency mining. From a VBit Applied sciences fraud order issued by California’s DFPI in 2024;
VBit’s mining packages consisted of specialised Bitcoin mining {hardware} and “internet hosting” providers, which enabled clients with little or no technical experience in Bitcoin mining to depend on VBit’s mining specialists.
VBit Applied sciences 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 now not function in the USA. VBit said in an e mail that it “stopped all gross sales and withdrawals due to a possible pending settlement with the US SEC.”
Buyers have been frozen out of their accounts and unable to withdraw their funds.
VBit Applied sciences’ SEC settlement exit-scam ruse was after all baloney. The SEC additional alleges;
Vo falsely claimed in promotional supplies that VBit was “[f]ully compliant and registered with each acceptable US authorities entity.”
Vo additionally falsely claimed to not less than one in-person viewers that VBit was “registered with the SEC.” VBit was not registered with the SEC.
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.
This after all was additionally baloney.
All up the SEC alleges Vo (proper), by means of his VBit Restricted and Superior Mining Group scams, defrauded round 6400 customers out of over $95.6 million.
VBit Restricted and Superior Mining Group’s Ponzi ruse was bitcoin mining.
From the SEC’s filed lawsuit;
Vo claimed that VBit provided traders “a turnkey resolution for common individuals to begin making a passive earnings stream by means of Bitcoin mining with out all of the complications of working the machines.”
Vo provided and bought funding contracts to traders that purported to offer traders with passive income from mining rigs that—although ostensibly bought by traders from VBit—had been totally managed and operated by VBit. Whereas some traders acquired returns on their investments, others suffered substantial losses, and Vo misappropriated $48.5 million.
Whereas bitcoin mining was the ruse bought to VBit Applied sciences traders, right here’s what was occurring contained in the rip-off;
Since VBit didn’t create or preserve any information figuring out which mining rigs had been purportedly owned by which traders, there was no method for VBit to determine which mining rigs to ship to an investor whose termination request was granted.
VBit bought Internet hosting Agreements for extra mining rigs than VBit was really working.
In 2020, VBit bought Internet hosting Agreements for 3,325 mining rigs however operated solely 920 mining rigs.
In 2021, VBit bought Internet hosting Agreements for roughly 8,472 mining rigs however operated just one,643 mining rigs.
By one other metric, VBit bought a purported 8,472 mining rigs that had been to generate a mixed complete of 846,700 terahash of each day energy in 2021, however VBit actually operated just one,643 mining rigs that generated a mixed complete of 177,280 terahash of each day energy that 12 months.
Additional, VBit didn’t have the funds obtainable to again up the full balances reported on each investor’s on-line account.
It’s because, for a lot of of these traders, Vo misappropriated their invested funds (roughly $48.5 million) and by no means used their funds to amass mining rigs or function mining rigs to mine bitcoin on their behalf.
Round $5 million of the $98.5 million Vo stole is confirmed to have been transferred to relations. The SEC claims Vo fled the US in November 2021, after studying of the SEC’s investigation.
From not less than December 18, 2020 by means of not less than November 18, 2021, Vo transferred roughly $48.5 million of the roughly $95.6 million raised from traders on to his private financial institution accounts.
From December 18, 2020 by means of mid-October 2021, Vo transferred roughly $32.7 million of misappropriated investor funds from his private checking account to his private account on a crypto asset buying and selling platform, a few of which he used to buy bitcoin and different crypto property.
Vo grew to become conscious of the SEC’s investigation on or about October 19, 2021.
Instantly after, between October 20, 2021 and November 18, 2021, Vo transferred roughly $15.7 million of investor funds from a VBit account to his private checking account.
On November 19, 2021, Vo filed for divorce in opposition to his spouse, Phuong D. Vo.
On or about November 20, 2021, Vo left the USA. Vo’s journey itinerary indicated that his remaining vacation spot was Vietnam.
After fleeing the US, Vo up to date his LinkedIn profile to replicate he was “retired for all times”.
Whereas Danh Vo is understood to have fled the US, the SEC cites his member of the family beneficiaries as US residents;
Phuong D. Vo, age 39, is a resident of Philadelphia, Pennsylvania. She is Danh Vo’s ex-wife.
My Tien Thi Nguyen, age 58, is a resident of Cherry Hill, New Jersey. She is Danh Vo’s mom.
Danny H. Vo, age 30, is a resident of Philadelphia, Pennsylvania. He’s Danh Vo’s brother.
Diem T. Vo, age 40, is a resident of Bellmawr, New Jersey. She is Danh Vo’s sister.
Particular to every member of the family, the SEC alleges;
Previous to October 2021, Vo gave his sister, Diem T. Vo, $300,000 of funds that he had misappropriated from VBit traders.
On November 2, 2021, Vo gave his brother, Danny H. Vo, $500,000 of funds that he had misappropriated from VBit traders.
On November 16, 2021, Vo initiated the method of transferring $1,000,000 of funds that he had misappropriated from VBit traders right into a belief for his minor daughter, which was later established and funded in 2022.
On November 16, 2021, Vo gave his good friend $300,000 of funds that he had misappropriated from VBit traders, which the good friend subsequently transferred to Vo’s spouse, Phuong D. Vo.
On November 17, 2021, Vo gave his mom, My Tien Thi Nguyen, $100,000 of funds that he had misappropriated from VBit traders.
Between November 16, 2021 and December 21, 2021, Vo gave his spouse, Phuong D. Vo, an extra $1.8 million of funds that he had misappropriated from VBit traders.
None of those relations—Diem T. Vo, Danny H. Vo, Phuong D. Vo, or My Tien Thi Nguyen—offered providers or consideration in trade for these funds, however as a substitute Vo offered the funds as presents. They don’t have any professional declare to those funds.
Figuring out VBit Applied sciences’ MLM crypto mining funding scheme as an unregistered securities providing, the SEC has sued Vo for a number of violations of the Securities Trade Act.
Moreover an injunction in opposition to Vo is sought, in addition to disgorgement, prejudgment curiosity and a civil penalty. The SEC can be seeking to claw again investor funds Vo transferred to his relations.
Keep tuned for updates as BehindMLM continues to trace the SEC’s VBit Applied sciences fraud lawsuit.
