PANews reported on December 15 that according to Businesswire, a group of investors filed a lawsuit against the founder of Rhodium Enterprises, a Bitcoin mining company based in Rockdale, Texas, accusing it of fraud. The lawsuit was filed by attorneys Iacuone McAllister Potter, claiming that the defendants (including Rhodium executives and Fort Worth-based Imperium Investments Holdings, LLC) intentionally misled the plaintiffs to invest a total of $33 million by concealing key information and engaging in proprietary trading. The case has been filed in Tarrant County District Court.
The plaintiffs, which include more than a dozen Rhodium investors, allege that material facts about their investments and Rhodium’s business operations were intentionally concealed. Most prominently, the lawsuit alleges that the defendants failed to disclose the pending sale of Rhodium’s operating facilities to direct competitor Riot Blockchain, a deal that directly created a conflict over key power contracts.
Previously, Rhodium Enterprises filed for Chapter 11 bankruptcy protection in the Southern District of Texas in August. The bankrupt companies include six of the company's subsidiaries, including Rhodium Encore and Rhodium 2.0.
