Argo Blockchain with a lawsuit about misleading statements

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Argo Blockchain was accused of violating the Federal Working Act in the Börsengang (IPO) of his American Depositary Shares (ADS) in 2021, as can be seen from a file submitted to the US district court for the eastern district of New York.

The latest development is another blow for Argo, which fought in a brutal crypto winter to keep afloat. In the complaint, it was claimed that the company had negligently prepared its IPO documents, the decisive details that would affect its nervous stability.

lawsuit against Argo

In the class lawsuit, Argo Blockchain investors have accused the company, made untrue statements and have left out important information, which means that they did not disclose their capital restrictions, electricity and other costs and network difficulties. In the submission it is said that the restrictions to reduce his ability to reduce Bitcoin and to operate his helios system in Texas.

The argument focused on the fact that Argo's business was less sustainable than the investors wanted to believe. They also claimed that the company's business and financial prospects were overrated. As a result of “illegal actions and omissions” by Argo, investors suffered significant losses.

"The offer documents were created negligently and, as a result, contained untrue statements about essential facts or has been refrained from specifying other facts that are necessary so that the statements made are not misleading, and they were not created in accordance with the rules and regulations for their creation."

During his IPO, the mining company based in London spent around 7.5 million ADS shares at an offer price of $ 15, which gave the mining company a proceeds of around $ 105 million. Since then, however, the share price has broken down.

crypto winter has proven to be rocky

In addition to several miners, Argo Blockchain was forced to sell more last summer than was dismantled in a month than the prices went down. When his shares suffered a blow, the plan previously announced was canceled $ 27 million. By the end of 2022, it stopped trading on Nasdaq.

Argo even sold his Helios mining system in Texas for $ 65 million to Galaxy Digital. The deal also required that Galaxy provides the mining company a loan of $ 35 million in order to avoid bankruptcy.

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