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Bit Digital, a Nasdaq-listed mining company owned by Yuhong, was sued, and its executives "reshuffled"

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According to reports, Yuhong acquired the predecessor of “Bit Digital” in September 2020 and changed its name.

Rhythm BlockBeats news, on February 4, Nasdaq-listed mining company Bit Digital (BTBT) announced that its board of directors had removed Min Hu as CEO. The bitcoin mining company also said that Ping Liu resigned as chairman of the board due to "health reasons."

Bit Digital said CFO Erke Huang will succeed Min Hu as interim CEO and the board of directors Member Zhaohui Deng will be appointed Chairman. In addition, the board accepted the decision of Hong Yu (suspected to be Yuhong) to resign as chief strategy officer and director.

Bit Digital did not give a reason for Min Hu’s dismissal, only saying that he “did not participate in the company’s mining business".

The changes come amid an ongoing class-action lawsuit against the mining company. A research report released by J Capital Research, a short-selling agency in the United States, accused the company of fraud. “Bit Digital reported at the end of Q3 2020 that it claimed to be operating 22,869 bitcoin mining rigs in China, but that was a lie,” J Capital Research said. “They don’t have a subsidiary in China because that’s illegal. Yes, the machine will be confiscated.”

J Capital Research said it conducted inquiries with Chinese local governments and found that Bit Digital does not have any bitcoin mining infrastructure in the country. Even the company that said the mining company bought new miners has denied any such transactions.

Bit Digital was subsequently sued by investors, accusing the company of making false and misleading statements.

But Bit Digital has denied this claim. “We have not signed a lease contract for the Bitcoin mining facility. This is to reduce utility costs and the mining facility is maintained by our third-party supplier.” Apparently, the statement failed to convince the plaintiffs.

Bit Digital said it has hired two senior Strategic Advisor. Bit Digital said it expects the two advisors to become executives of the company after a transition period.

According to the previous report of Wu Shuo Blockchain, on September 8, 2020, the celebrity in the currency circle and the founder of XMAX Yuhong acquired the predecessor of "Bit Digital" and changed its name to "BTBT".