After the sale of the largest Argo Blockchain mining farm to Galaxy Digital for $65 million, the situation with Argo worsened due to growing claims from investors. On Thursday, January 26, they sued the executives and members of the Board of Directors of Argo Blockchain. The plaintiffs allege that the company did not report electricity costs, network problems, and Argo Blockchain capital limits.
The lawsuit alleges that Argo's share offering documents were negligently prepared and contained false statements about material facts, and some were completely silent.. Investors claim that the company's business turned out to be less stable than they thought, and this led to an overestimation of the miner's financial prospects.
“If investors had known reliable information, they would not have bought the company's securities at inflated prices,” the class action lawsuit says.
Argo released this information in September 2021 during its IPO filing with the US Securities and Exchange Commission (SEC).. Argo Blockchain Listed on the Nasdaq Stock Exchange with 7.5 Million American Depositary Receipts Valued at Over $15. Since then, the value of the shares of the mining company has fallen sharply, and now they are trading at $1.9 per share.
In December, Argo Blockchain Chief Content Officer Will Foxley tweeted a screenshot accidentally sent to him that suggested the mining company could file for bankruptcy.