PANews reported on December 15 that a group of investors has filed a lawsuit against the founders of the Bitcoin mining company Rhodium Enterprises, located in Rockdale, Texas, accusing them of fraud. The lawsuit was filed by attorneys from Iacuone McAllister Potter, claiming that the defendants (including Rhodium executives and Imperium Investments Holdings, LLC based in Fort Worth) deliberately misled the plaintiffs by concealing key information and engaging in self-dealing transactions, resulting in a total investment of $33 million by the plaintiffs. The case has been filed in Tarrant County District Court.
The plaintiffs include a dozen investors of Rhodium who claim that important facts regarding their investments and Rhodium's business operations were deliberately concealed. Most notably, the lawsuit alleges that the defendants failed to disclose a transaction involving the impending sale of Rhodium's operational facilities to direct competitor Riot Blockchain, which directly triggered conflicts over key power contracts.
Previously, Rhodium Enterprises filed for Chapter 11 bankruptcy protection in August in the Southern District of Texas. The bankrupt company includes six subsidiaries, including Rhodium Encore and Rhodium 2.0.
