Crypto Miners Advance Ponzi Scheme Suit Over Computers, Hosting

Customers of a company that allegedly operated a cryptocurrency-mining equipment and hosting services Ponzi scheme can proceed with racketeering claims against a founder and manager, a federal court ruled.

The customers’ proposed class claims under the Racketeer Influenced and Corrupt Organizations Act can’t rest on securities violations—but Vbit Technologies Corp.'s packages didn’t constitute securities, Judge Jennifer L. Hall said for the US District Court for the District of Delaware.

• Vbit executive and co-founder Jin Gao and operations director Phuong Vo allegedly recruited customers for mining contracts, provided information, and encouraged customers to become recruiters themselves, while using new customers’ funds ...