Hut 8 Accused of Concealing Stock Ownership in Pump-and-Dump Scheme
Bitcoin miner Hut 8 has been accused of engaging in a pump-and-dump scheme and hiding stock ownership, according to an unconfirmed report by JCapital Research. The accusations stem from Hut 8’s recent partnership with US Bitcoin (USBTC), which has raised concerns among investors.
Accusations of Troubled History and Hidden Stock Ownership
JCapital Research alleges that USBTC promoters have a history of legal trouble, including defaulting on loan payments and paying fines. Furthermore, the firm claims that Hut 8’s management is concealing stock ownership of its largest shareholders through an undisclosed related party.
The Partnership and Price Plunge
In November 2023, Hut 8 announced its partnership with USBTC, resulting in the creation of New Hut under the trading ticker NASDAQ:HUT. However, following the release of JCapital’s report, the price of HUT shares plummeted over 20%.
Allegations of a Pump and Dump Scheme
The report suggests that Hut 8 inherited a significant debt from the merger and highlights details that indicate it was a pump-and-dump target. According to an insider, the merger saved USBTC from bankruptcy after losing miners and assets. Additionally, the value of USBTC was found to be 70% less than expected.
Shares Plunge Amidst Report
As a result of JCapital’s report, Hut 8’s shares have declined by 23.49%. It is important to note that this drop coincides with a broader market correction affecting miner prices, with Marathon Digital down by 6.89% and Riot Platforms plummeting by 4.97%.
Hot Take: Hut 8 Faces Accusations of Misconduct
Hut 8, a Bitcoin miner, is under scrutiny for allegedly participating in a pump-and-dump scheme and hiding stock ownership. The accusations were made by JCapital Research in response to Hut 8’s recent partnership with US Bitcoin. JCapital claims that USBTC promoters have a troubled history and that Hut 8’s management is concealing stock ownership. Following the release of the report, Hut 8’s shares dropped significantly. These allegations raise concerns about the company’s practices and its impact on investors. As the investigation unfolds, it remains to be seen how Hut 8 will respond to these accusations and how it will affect the broader cryptocurrency industry.
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