SAN FRANCISCO, April 6, 2021 / PRNewswire / – Hagens Berman urges Ebang International Holdings (NASDAQ: EBON) investors with significant losses to file their losses now. The company is investigating possible securities fraud and certain investors may have valuable claims.
Contact an attorney now: [email protected]
Ebang International Holdings (NASDAQ: EBON) Investigation:
The research focuses on the veracity of Ebang’s statements regarding the use of capital raised by investors and its claim to be a leading manufacturer of bitcoin mining equipment.
In particular, Ebang has increased roughly over the past year $ 374 million by investors in public offerings and represented, it would use this proceeds to “expand our activities” in cryptocurrency mining, exchange platforms and general corporate purposes.
These statements were challenged on April 6, 2021when analyst Hindenburg Research published a scathing report entitled “Ebang: Another Crypto ‘China Hustle’ Fleeing With US Investor Money”.
According to Hindenburg, the company channeled much of the company’s money through a series of opaque deals with companies affiliated with Ebang’s chairman / CEO and his underwriter. In particular, Hindenburg closes the targeted company (1) $ 103 million in bond purchases related to his underwriter who is known to have fraudulent allegations against him, and (2) $ 21 million to a relative of his chairman / CEO, which coincides with the increase in this amount from investors.
Hindenburg also concludes that Ebang is not a leading manufacturer of Bitcoin mining equipment, has only sold a dime compared to other major Chinese manufacturers, and is projected to drop those sales by 97% in fiscal 2020.
In response, the price of Ebang shares fell sharply.
“We are focusing on investor losses and whether Ebang has lied to investors about the real business and the use of capital,” he said Reed Kathrein, the Hagens Berman partner who led the investigation.
If you are an Ebang investor and experience significant losses or have knowledge that may aid the company’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Individuals with nonpublic information about Ebang should review their options to help with the investigation or use the SEC whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards of up to 30 percent for each successful SEC recovery. Please call for more information Reed Kathrein at 844-916-0895 or by email [email protected].
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SOURCE Hagens Berman Sobol Shapiro LLP