Ademi LLP is investigating possible securities fraud claims against Ebang (NASDAQ:EBON). The investigation results from inaccurate statements Ebang may have made regarding its financial results, business operations and prospects.
The investigation focuses on whether Ebang properly disclosed how it used the proceeds from it November IPO. Hindenburg Research has alleged Ebang is directing proceeds into a "series of opaque deals with insiders and questionable counterparties." According to Hindenburg, Ebang claimed that it was using the $21 million from its IPO "primarily for development," but that these proceeds were used to repay loans to a relative of Ebang's Chairman/CEO Dong Hu.