The facility, the former enterprise of VBit Technologies, was recently seized by the U.S. government acting under a federal asset forfeiture statute. In their suit, they charge the firm’s complicity in the company’s own alleged Ponzi scheme that defrauded investors. The once-prized operation is now caught up in a contentious bankruptcy lawsuit. This case highlights the dangers associated with investment in the unpredictable cryptocurrency sector.
Don Vo, a native of Vietnam who founded VBit Technologies, is charged with deceiving investors through an elaborate Ponzi-like scheme. Investors accuse Vo of portraying himself as a technology expert even as he engaged in an alleged Ponzi scheme. VBit Technologies chairman, Jin Gao, is named in the class action suit.
In March 2021, VBit found a home in the Columbia Heights facility. With a potential capacity of 3.8 megawatts, it’ll generate enough energy to supply 3,800 homes within Flathead Valley. VBit Technologies falsely announced that it had been acquired by Advanced Mining for $105 million.
During its height, VBit Technologies had brought in around 15,000 investors. The company provided bundled equipment and hosting packages totaling $111,874. A video from February 2021 featuring Don Vo and Jin Gao setting up computers at the Montana facility.
VBit Technologies’ capacity was unreasonably delayed well beyond its commitments outlined in contracts. Even then, in 2020, the company had capacity for only 1,000 mining rigs—though it was under contract for 2,700 units. Just a year later, capacity in the industry increased to 1,700 rigs, but contracts had inflated to 6,800.
Stephen Ranieri, one of the investors, allegedly invested more than $80,000 with VBit Technologies expecting to hit “Black Diamond.” The end of the bitcoin boom in late 2021 revealed VBit Technologies’ financial sketchiness, which began alarming the company’s investors.
After the issuance of a criminal forfeiture order, the U.S. Marshal Service took control of the Columbia Heights property.
and take possession of the defendant property and any property thereon may be disposed of at the discretion of the U.S. Marshal Service. - District Court Judge Gregory Williams
Lee Chia Jian
Blockchain Analyst
Lim Wei Jian blends collectivist-progressive values and interventionist economics with a Malaysian Chinese perspective, delivering meticulous, balanced blockchain analysis rooted in both careful planning and adaptive thinking. Passionate about crypto education and regional inclusion, he presents investigative, data-driven insights in a diplomatic tone, always seeking collaborative solutions. He’s an avid chess player and enjoys solving mechanical puzzles.
