Michael has over 20 years of experience representing individual and small business plaintiffs against the world’s large financial institutions, including Visa, Mastercard, and Chase.
On Tuesday April 6, 2021, Hindenburg Research released a report alleging that Chinese cryptocurrency company Ebang International Holdings Inc.has directed over $100 million towards “opaque deals with insiders” and “questionable counterparties” instead of developing its business operations as promised.
On this news, Ebang’s stocks dropped 13% in intraday trading on Tuesday April 6, 2021. If you invested in Ebang, you may have a claim.
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EBON stock drops 13% after Hindenburg report
On Tuesday April 6, 2021, shortseller 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.
If you invested in EBON stock, you may have a legal claim. Contact our securities lawyers today for a free and confidential consultation.
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