According to BlockBeats, on December 15, a group of investors filed a class action lawsuit against the founder of Rhodium Enterprises, a Bitcoin mining company in Texas, accusing him of fraud.
The lawsuit, filed by attorneys for Iacuone McAllister Potter, alleges the defendants misled investors out of $33 million through withholding information and proprietary trading. The case was filed in Tarrant County District Court.
The plaintiffs claim the defendants failed to disclose the sale of Rhodium facilities to rival Riot Blockchain, leading to conflicts in power contracts. Rhodium filed for bankruptcy in August with $100 million in debts.