SAN FRANCISCO, May 23, 2021 (GLOBE NEWSWIRE) — Hagens Berman urges Ebang International Holdings (NASDAQ: EBON) investors with significant losses to submit your losses now. The firm is investigating possible securities fraud and certain investors may have valuable claims.
Ebang International Holdings (NASDAQ: EBON) Securities Class Action:
The investigation focuses on the accuracy of Ebang’s statements concerning its use of capital raised from investors and its claim to be a leading manufacturer of bitcoin mining machines.
More specifically, over the past year, Ebang raised approximately $374 million from investors in public offerings and represented it would use these proceeds to “further expand our operations” in cryptocurrency mining, exchange platforms, and general corporate purposes.
These statements were brought into question on Apr. 6, 2021, when analyst Hindenburg Research published a scathing report entitled “Ebang: Yet Another Crypto ‘China Hustle’ Absconding With U.S. Investor Cash.”
According to Hindenburg, the company directed much of the cash out of the company through a series of opaque deals with entities linked to Ebang’s Chairman/CEO and its underwriter. Specifically, Hindenburg concludes the company directed (1) $103 million into bond purchases linked to its underwriter which has a track record of fraud allegations levied against it, and (2) $21 million to a relative of its Chairman/CEO coincident with raising that amount from investors.
Hindenburg also concludes Ebang is not a leading bitcoin mining machine producer, only sold a pittance compared to other large Chinese producers, and is slated for a 97% decline in such sales for FY 2020.
In response, the price of Ebang shares declined sharply.
“We’re focused on investors’ losses and whether Ebang lied to investors about its true operations and use of capital,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are an Ebang investor and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Ebang should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
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Reed Kathrein, 844-916-0895