Gibbs Law Group Investigates Potential Securities Law Violations
OAKLAND, Calif.–(BUSINESS WIRE)–$EBON–Ebang International Holdings Inc. shares dropped 13% in intraday trading on April 6, 2021 after a report by Hindenburg Research alleged the Chinese cryptocurrency company has funneled hundreds of millions of dollars from investors towards “questionable counterparties” and “insiders.” Gibbs Law Group is investigating a potential Ebang Stock Class Action Lawsuit on behalf of investors who lost money in Ebang International (NASDAQ:EBON).
To speak with an attorney regarding this class action lawsuit investigation, click here or call (888) 410-2925.
On Tuesday April 6, 2021, Hindenburg Research released a report alleging that after raising four rounds of funding from investors since its IPO in June 2020, Ebang has directed over $100 million towards “opaque deals with insiders” and “questionable counterparties” instead of developing its business operations as promised. For example, in November 2020 Ebang raised $21 million in its first secondary offering and claimed proceeds would go “primarily for development,” but the company then spent $21 million repaying related-party loans to a relative of Ebang’s Chairman and CEO, Dong Hu.
Though Ebang debuted as a “leading bitcoin mining machine producer,” Hindenburg alleges its final miner was released in May 2019 and that sales of miners have since “dwindle[d] to near-zero.” Then, Ebang reports its cryptocurrency exchange Ebonex is one of the largest spot exchanges in the world, but Hindenburg alleges Ebonex appears to have “no online presence” and its volumes appear “fictitious.”
On this news, Ebang’s stocks dropped 13% in intraday trading on Tuesday April 6, 2021, causing significant harm to investors.
What Should Ebang Investors Do?
If you invested in Ebang, visit our website or contact our securities team directly at (888) 410-2925 to discuss how you may be able to recover your losses. Our investigation concerns whether Ebang International Holdings Inc. has violated federal securities laws.
About Gibbs Law Group
Gibbs Law Group represents individual and institutional investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Top Class Action Attorneys Under 40,” “Consumer Protection MVP,” and “Top Cybersecurity/ Privacy Attorneys Under 40.”
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