The U.S. Securities and Exchange Commission (SEC) has accused the CEO of misappropriating $48.5 million for gambling and family expenses.

 U.S. Securities and Exchange Commission (SEC) has filed charges against Danh C. Vo, founder and CEO of Bitcoin mining company VBit, accusing him of embezzling $48.5 million, with some of the funds used for gambling and buying gifts for family members.

According to the complaint filed by the SEC on Wednesday in the U.S. District Court for the District of Delaware, 37-year-old Vo and VBit Technologies Corp. raised over $95.6 million from approximately 6,400 investors. The SEC alleges that Vo lied to investors about how his Bitcoin mining business operated and how the funds were used.

The SEC stated that the number of custodial agreements VBit sold to investors far exceeded the number of mining machines it actually operated. Vo transferred $5 million to family members and his ex-wife, who are also named as defendants. In November 2021, Vo filed for divorce and left the United States with the remaining embezzled funds.

VBit was acquired by Advanced Mining Group in 2022.