The SEC filed suit against Danh C Vo, founder of Bitcoin miner VBit, alleging he offered unregistered securities by selling hosting agreements that promised customers periodic Bitcoin payments while VBit operated and controlled the rigs. The complaint says Vo sold more hosting agreements than there were rigs, causing large customer losses, and misappropriated $48.5 million of customer funds to buy crypto, gamble, and purchase lavish gifts. The investigation dates to 2021 and the case reflects continued SEC enforcement activity in crypto.

The SEC alleges concrete misconduct: hosting agreements treated as unregistered securities, overselling of agreements relative to rigs, and $48.5M in customer fund misappropriation. These are explicit enforcement and fraud claims that increase regulatory and legal risk for third‑party mining services.