Argo Blockchain Accused Of Defrauding Investors During IPO In 2021

Key Points:

• Investors in Argo Blockchain have launched a complaint, claiming that the cryptocurrency miner made false claims and withheld crucial facts during its IPO filing.
• After filing the necessary paperwork to the U.S. Securities and Exchange Commission, Argo became public on September 23, 2021.
• The company raised roughly $105 million during its IPO by selling about 7.5 million shares at a price of $15 each.

On January 26, a brand-new lawsuit was launched against the cryptocurrency mining company Argo Blockchain and a number of its executives and board members.

Investors in Argo have launched a class-action complaint, alleging that the miner misled them and omitted important details during its 2021 initial public offering (IPO). According to the complaint, the company omitted information about its vulnerability to cash limits, power prices, and network issues.

“The offering documents were negligently prepared and, as a result, contained untrue statements of a material fact or omitted to state other facts necessary to make the statements made not misleading,” the lawsuit read.

The investors contend that this made the company “less sustainable” than it had appeared to be to them, which caused an overestimation of the miner’s financial prospects. The lawsuit stated:

“Had Plaintiff and the other members of the Class known the truth, they would not have purchased or otherwise acquired said securities, or would not have purchased or otherwise acquired them at the inflated prices that were paid.”

A few days after Argo Blockchain resumed compliance with the Nasdaq listing requirement, which requires a business to maintain a minimum closing bid price of $1 for 10 consecutive trading days, on January 23, the company filed a recent complaint.

On September 23, 2021, Argo made the material in issue public by filing paperwork pertaining to its first IPO with the Securities and Exchange Commission of the United States (SEC).

On the same day, 7.5 million shares were sold to the general public for $15 each, netting $105 million before expenditures. The miner’s stock price has fallen significantly since that time.

According to reports, Argo Blockchain sold Galaxy Digital their Helios facility as a result of the protracted bear market. As a result, its mining income decreased to $2.49 million, and as of the end of December 2022, it owed $79 million.

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Harold

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