Ebang Investor Investigation
Girard Sharp is investigating potential claims on behalf of Ebang stockholders based on reports that the firm misled investors about its investment allocations.
The price of Ebang shares dropped significantly after these claims emerged.
If you invested in Ebang, you may have a claim for relief.
Speak with a Girard Sharp investment fraud attorney for a free consultation by calling toll-free at (866) 981-4800 or by filling out the form below:
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More Information on the Ebang Investigation
On April 6, 2021, Hindenburg Capital released a report regarding its investigation into Ebang, a Chinese bitcoin mining machine manufacturer. The report asserts that instead of using its capital proceeds to develop its business operation, Ebang directed a significant amount of its investor funds “out of the company through a series of opaque deals with insiders and questionable counterparties.” According to this report, $103 million raised in the company’s offering was applied to bond purchases linked to its U.S. underwriter, AMTD, a company with a track record of fraud.
Hindenburg Capital’s report further claims that Ebang made false and misleading statements about its business. After launching a cryptocurrency exchange called “Ebonex,” Ebang is alleged to have reported volume data that implied that it was one of the largest spot exchanges in the world. This data contradicted Ebonex’s recent launch date, lack of online presence, and trading metrics from crypto-exchange trackers.
Following the Hindenburg report, Ebang’s share price fell by over 15%.
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For a free consultation about your potential claims, contact one of our investment fraud attorneys at (866) 981-4800 or by filling out the form above.