Core Scientific may be involved in illegal business practices

  • 10:39 Jan 11, 2023
Core Scientific may be involved in illegal business practices

A company from New York started the process of investigation. It is based on the report made by Culper Research. There was announced that mining and hosting operations were "highly oversold." Also, BTC miners and their management may be a part of illegal business practices.

As one argument, class-action lawsuit specialist Pomerantz LLP cites the lifting of a 180-day lock-up period for 282 million shares. This makes it possible to sell them two months later.

In addition, there was a 9.4% drop in the stock, which took place on March 3 based on the waiver of minority care. Another decline took place on September 28 following allegations from Celsius Network. At that time the securities lost 10.3%. The most huge decline in value occurred on October 27 due to Core Scientific's voiced doubts about its ability to operate in the future. It led to the shares going down in price by 78%.

Based on these claims, Pomerantz LLP urged investors to join a class action lawsuit and announced an upcoming investigation.

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