Ebang refutes Bitcoin ‘China Hustle’ claims as share price falls 20%

The share price of Chinese Bitcoin ( BTC) mining firm Ebang continues to collapse, whereas the company refutes claims made at a Hindenburg Research report which declared it had been pilfering American investors’ money.

The Hindenburg Research report, printed April 6, also explained Ebang as’only the most recent chapter from the’China Hustle’ disguised as a Bitcoin mining drama ‘ The report stated that Ebang increased hundreds of millions of dollars by public offerings from the USA under the guise of working as a Bitcoin mining firm.

The cash raised in the financing rounds was allegedly funneled from the business in’a collection of obvious deals with insiders and suspicious counterparties.’ Ebang explains itself as a’top Bitcoin mining system manufacturer,’ however based on Hindenburg’s study, the company has not published a brand new product because 2019, along with its own earnings have shrunk steadily since.

After investing in $6.35 on Monday, the share price had fallen to $5.00 from Tuesday’s near, equating to 21% reductions. The stock has shrunk back into $5.03, which makes weekly declines in excess of 20 percent.

The Hindenburg report stated that Ebang watched that the writing has been on the wall due to the mining rig firm, which had been stated to generate inferior machines into nearby rivals. The business is thought to have spun itself to a cryptocurrency market, known as Ebonex.

Hindenburg researchers claim to have discovered that the Ebonex market was bought from a crypto exchange service supplier named Blue Helix, that supplies’out-of-the-box’ trades for no cash upfront.

After launch only months past, Ebonex miraculously jumped to record a number of the maximum trade volumes from the planet, despite getting no internet presence at all. Its supposedly fictitious figures aren’t listed on crypto marketplace tracker sites like CoinMarketCap or even CoinGecko, and Hindenburg describes this entire event as’yet another cautionary tale for inexperienced foreign dealers ‘

The analysis prompted an official reply by Ebang International Holdings Inc, which maintained the review was filled with speculation and jobless claims. The statement said that Ebang will inspect the claims made by Hindenburg, and also take the essential actions to guard its shareholders.

‘According to the inspection by the organization’s management group, we think the Hindenburg Report include many mistakes, unsupported speculations and incorrect interpretations of occasions,’ said the statement.

It included,’The Board, with all its Audit Committee, plans to additional examine and inspect the allegations and misinformation there and also will take whatever appropriate and necessary actions might be asked to guard the interest of its investors ‘