Danh Vo

Full Report

Key Points

• Danh C. Vo, founder and CEO of VBit Technologies Corp., is accused by the SEC of orchestrating a $48.5 million fraud scheme involving unregistered securities in the form of Bitcoin mining hosting agreements.
• Between December 2018 and February 2022, Vo raised over $95.6 million from approximately 6,400 investors by promising passive income from Bitcoin mining operations, but allegedly oversold mining capacity, faked investor returns, and misappropriated funds for personal use, including gambling and gifts to family members.
• Vo fled the United States in November 2021 with some of the funds and is currently at large; his family members have been named as relief defendants and agreed to surrender over $5 million in transferred assets.
• The scheme involved misleading investors about the scale of operations, with VBit mining only about 425 Bitcoin (worth around $36 million today) while displaying fabricated earnings on customer dashboards in a Ponzi-like structure where early investors were paid with new funds.
• Prior warnings about VBit included red flags like incomplete executive profiles and suspicious promotional tactics, and the company collapsed amid class-action lawsuits following the 2021-2022 crypto market downturn.

Overview

Danh C. Vo, a 37-year-old former resident of Philadelphia, Pennsylvania, founded VBit Technologies Corp. in 2018 as a Bitcoin mining company. The firm offered investors opportunities to participate in cryptocurrency mining without managing equipment themselves, primarily through “hosting agreements” where VBit purportedly operated mining rigs on behalf of investors in facilities, including one owned in rural Montana and others leased elsewhere. Investors were promised proportional shares of mined Bitcoin based on their computing power (hashrate) contributions, marketed as a turnkey, passive-income model. In January 2022, Vo announced the creation of a successor entity, Advanced Mining Group, which he claimed was an “Asia-based” company acquiring VBit for $105 million to scale operations globally. However, the SEC alleges this was a fictitious entity existing only on paper. VBit ceased operations in 2022 after the acquisition announcement, amid growing investor suspicions and the broader crypto market crash. Vo exercised total control over the company, including its website, marketing materials, and investor portals.

Allegations and Concerns

• SEC Fraud Charges: The SEC filed a complaint on December 17, 2025, in the U.S. District Court for the District of Delaware, accusing Vo of violating federal securities laws by offering unregistered investment contracts (hosting agreements) that met the Howey Test criteria for securities. Allegations include misleading investors about operational scale, misappropriating $48.5 million, and using funds for personal expenses like gambling, cryptocurrency purchases, and over $5 million in gifts to family.
• Overselling Capacity: Vo sold hosting agreements for far more mining rigs than VBit actually operated or could support, leading to unsustainable promises and substantial losses for many investors.
• Fabricated Returns: Investor dashboards displayed hypothetical earnings unrelated to actual mining output; real profits were diverted to Vo-controlled accounts.
• Ponzi Elements: Early investors received some returns funded by new investor money, while others saw no payouts, creating a classic pyramid structure.
• Pre-Collapse Red Flags: Warnings from 2020 highlighted Vo’s bare LinkedIn profile (lacking a photo), absence from social media, and suspicious promotional posts showing unverified Coinbase deposits, often linked to scams. By 2023, reports noted the facility’s collapse, Vo’s disappearance, and emerging class-action lawsuits over fraud and unregistered securities.
• Flight from Justice: Vo left the U.S. in late 2021 with misappropriated funds, citing health issues to delay communications, and his whereabouts remain unknown.

Customer Feedback

Feedback on VBit and Vo is overwhelmingly negative, with no verifiable positive reviews found in recent sources; earlier promotions may have included fabricated testimonials. Investors reported growing suspicions around the 2022 “acquisition” by a purported Asia-based firm, which they viewed as a stalling tactic. Specific complaints include:

• Negative: “We have already received countless complaints about this… scam and how it is stealing money from people,” from a 2019 review site (though initially tied to a similar mining scheme, echoed in VBit discussions). Investors noted fake dashboard figures: “Those figures were nothing more than pixels on a screen,” with actual profits controlled solely by Vo. One report highlighted “hundreds of complaints from people who have not gotten a single penny back.” On social media, users described it as a “crypto scam” with “mountains of Coinbase deposits” that were “ohh so lovely ‘real’ screenshots” but unverified.
• Positive: None identified; some early investors reportedly received partial returns, but this was attributed to Ponzi mechanics rather than legitimate operations.

Risk Considerations

• Financial Risks: High likelihood of total loss for investors, as the scheme oversold capacity and diverted funds, resulting in only partial mining output (425 Bitcoin) versus promised returns. Crypto volatility amplified losses during the 2021-2022 market downturn.
• Reputational Risks: Association with Vo or VBit could damage credibility due to fraud allegations, flight from authorities, and links to unregistered securities, deterring future business or investments.
• Legal Risks: Ongoing SEC lawsuit seeks disgorgement of gains, civil penalties, and a ban on Vo from future securities offerings. Potential class-actions from investors add exposure; family members’ involvement as relief defendants highlights risks of asset forfeiture.

Business Relations and Associations

Vo maintained sole control over VBit, with no major external partnerships disclosed beyond leasing mining facilities and pooling hashrate with third-party pools. The purported acquisition by Advanced Mining Group was allegedly a sham. Key associations include family members named as relief defendants: ex-wife Phuong D. Vo, mother My Tien Thi Nguyen, brother Danny H. Vo, and sister Diem Vo, who received over $5 million in transferred funds and have agreed to surrender them. A regional leader, Bin Y. Zheng, was linked to suspicious promotional posts on VBit’s Facebook. No legitimate industry ties were evident; operations relied on multi-level marketing tactics with luxury incentives like sports cars and watches.

Legal and Financial Concerns

• Lawsuits: SEC complaint filed December 17, 2025, for fraud, unregistered securities offerings, and misappropriation. Class-action lawsuits emerged post-2022 collapse over similar fraud claims.
• Unpaid Debts/Bankruptcy: VBit is defunct, with no formal bankruptcy noted, but investor losses total substantial amounts; the company mined Bitcoin now worth $36 million, but most was diverted.
• Other Concerns: No prior bankruptcies for Vo personally, but his flight and asset transfers suggest evasion; the SEC seeks permanent injunctions against future violations.

Risk Assessment Table

Conclusion

This case exemplifies the vulnerabilities in unregulated crypto mining ventures, where promises of passive income often mask Ponzi schemes exploiting technical complexity.  None substantial; early investors may have profited briefly, but at others’ expense. Complete lack of transparency, verifiable operations, or investor control; funds were treated as a personal slush fund, leading to widespread losses. Cautionary advice: Always demand on-chain traceability for payouts, independent hashrate verification, segregated accounts, and clear disclosures on power and equipment—non-negotiables absent here. Avoid “turnkey” models without securities registration or audits; verify executives’ backgrounds and steer clear of multi-level marketing in crypto. The SEC’s action signals tighter oversight, but investors must prioritize due diligence to mitigate such frauds.