Hut 8 Leaders Allegedly Hid Merger Conflicts, Exaggerated Profit

Hut 8 Corp. executives and directors failed to disclose conflicts of interest in US Bitcoin Corp.’s merger with the crypto and data mining company, and exaggerated the profitability of a specific facility, a shareholder derivative complaint says.

One of USBTC’s biggest shareholders was an undisclosed related party in the transaction and filings concealed risks the merger posed to Hut 8’s financial stability, according to the complaint filed Wednesday in US District Court for the Southern District of New York.

The King Mountain Joint Venture facility, which Hut 8 took over through the merger, was among UBTC’s financially unstable assets, having ...