Argo Blockchain accused of misleading investors in class action lawsuit

Investors of crypto mining steadfast Argo Blockchain person filed a people enactment suit accusing the miner of making untrue statements and omitting cardinal accusation during its archetypal nationalist offering (IPO) successful 2021.

A recently filed suit connected Jan. 26 is aimed astatine Argo and respective of its executives and committee members. It claims the steadfast failed to disclose however susceptible it was to superior constraints, energy costs and web difficulties.

"The Offering Documents were negligently prepared and, arsenic a result, contained untrue statements of worldly information oregon omitted to authorities different facts indispensable to marque the statements made not misleading," the suit read.

As a result, the investors assertion the concern was “less sustainable” than they had been led to judge which led to an overstatement of the miner’s fiscal prospects. The ailment noted:

“Had [the investors] known the truth, they would not person purchased oregon different acquired said securities, oregon would not person purchased oregon different acquired them astatine the inflated prices that were paid.”

Argo released the accusation successful question connected Sep. 23, 2021, erstwhile the steadfast filed documents with the United States Securities and Exchange Commission (SEC) relating to its IPO.

7.5 cardinal shares were issued to the nationalist connected the aforesaid day astatine an offering terms of $15 resulting successful proceeds of $105 cardinal earlier expenses.

Since then, the miner’s stock terms has taken a beating and is presently trading astatine $1.96 per stock aft having fallen arsenic debased arsenic $0.36.

The stock terms diminution of Argo Blockchain from Sep. 2021 to present. Source: Yahoo! Finance

Cointelegraph requested remark from Argo but did not instantly person a response.

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The caller suit comes conscionable days aft Argo regained compliance with Nasdaq’s listing regularisation connected Jan. 23, which requires a institution to support a minimum closing bid terms of $1 for 10 consecutive trading days.

Argo has had to marque immoderate hard decisions to upwind the ongoing carnivore marketplace and pugnacious conditions facing crypto miners. It announced connected Dec. 28 that it would beryllium selling its flagship mining facility, Helios, to integer plus concern manager Galaxy Digital for $65 million.

The Helios mining installation during its expansive opening. Source: YouTube

Crypto miners successful wide had a torrid twelvemonth successful 2022 — with precocious energy prices, falling crypto prices and accrued mining trouble each eating into their bottommost line.