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

A group of investors has filed a class-action lawsuit against the founder of Texas-based bitcoin mining company Rhodium Enterprises, alleging fraud. The lawsuit, filed by attorneys at Iacuone McAllister Potter, claims that defendants, including Rhodium executives and Fort Worth-based Imperium Investments Holdings, LLC, intentionally misled plaintiffs into investing a total of $33 million by concealing key information and engaging in proprietary trading. The case has been filed in Tarrant County District Court. The lawsuit alleges that "the defendants intentionally misled and deceived the plaintiffs to secure their millions of dollars in investments so that the defendants could enrich themselves and Imperium." The plaintiffs, including more than a dozen Rhodium investors, allege that material facts about their investments and Rhodium's business operations were intentionally concealed. Most prominently, the lawsuit alleges that the defendants failed to disclose the impending sale of Rhodium's operating facilities to direct competitor Riot Blockchain, a deal that directly triggered a conflict over key power contracts. (BusinessWire) In August, it was reported that Bitcoin mining company Rhodium Enterprises had filed for voluntary bankruptcy under Chapter 11 of the U.S. Bankruptcy Court for the Southern District of Texas, disclosing debts of up to $100 million. The document was filed on August 24 and includes six subsidiaries: Rhodium Encore, Jordan HPC, Rhodium JV, Rhodium 2.0, Rhodium 10MW and Rhodium 30MW. The document shows that the company's debt is between $50 million and $100 million, while its total assets are estimated to be between $100 million and $500 million.