The founder of the US Bitcoin mining company Rhodium faces a class action lawsuit for fraud, allegedly misleading investors to invest $33 million

a group of investors have filed a collective lawsuit against Rhodium Enterprises, a Bitcoin mining company in Texas, USA, accusing its founder of fraudulent behavior. The lawsuit, initiated by Iacuone McAllister Potter law firm, alleges that the founder intentionally misled the plaintiffs by concealing key information and engaging in self-trading, resulting in a total investment of $33 million. Additionally, the founder failed to disclose the sale of Rhodium's operating facilities to direct competitor Riot Blockchain. Rhodium Enterprises filed for Chapter 11 bankruptcy protection in the Southern District of Texas in August, including six subsidiaries such as Rhodium Encore and Rhodium 2.0.