Bitcoin Miner Hut 8 Accused of a Pump and Dump Scheme, HUT Shares Plummet
Bitcoin miner Hut 8 has been accused of hiding stock ownership in a perceived pump-and-dump scheme. The accusation comes from an unconfirmed report by JCapital Research.
In a Jan 18 release, the firm leveled accusations against the Bitcoin miner stemming from its recent partnership with US Bitcoin (USBTC) warning investors of potential trouble.
$HUT The J Capital Research report raises serious concerns about the merger of Hut 8 and U.S. Bitcoin Corp. (USBTC), now trading as "New Hut" on Nasdaq as $HUT. https://t.co/qSdinZxh6q
— yvsx (@yvsx) January 18, 2024
The firm claims that USBTC promoters have a history of legal trouble. Additionally, accusers say the company has previously defaulted on loan payments and paid fines on two separate occasions.
What’s more, the firm alleged that the company’s management hides stock ownership of the largest shareholders through an undisclosed related party.
On Nov 30, the Canadian miners announced the partnership with USBTC creating a new business partnership described as the biggest M&A transaction to have transpired within the digital asset industry as the CEO of HUT 8 Jamie Laverton expressed optimism.
The move created New Hut under the trading ticker NASDAQ:HUT and its price plummeted over 20% after the release of the report by JCapital.
According to the report, Hut 8 inherited a huge debt from the merger with other flagged details that concluded it was a pump-and-dumps target.
An insider revealed that the merger was a “godsend” for USBTC as the company would have gone bankrupt within weeks after the company lost about 50% of its miners in addition to other assets. The report added:
“ Our interviewee said that USBTC “begged” NYDIG to forgive the loan but soon after
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