Ebang International Holdings

EBON
Zaker v. Ebang International Holdings Inc. et al

On April 6, 2021, analyst Hindenburg Research published a scathing report on the Chinese cryptocurrency company, alleging that the company used the proceeds from four recent IPOs to funnel money to insiders and “questionable counterparties.” According to the report, Ebang raised $21 million in November 2020, claiming the proceeds would go “primarily for development.” The report alleges that $21 million was directed to repay related-party loans to a relative of the company’s Chairman/CEO Dong Hu. The report also noted that EBang’s earlier efforts to go public on the Hong Kong Stock Exchange failed due to widespread media coverage of its relationship with Yindou, a massive Chinese peer-to-peer online lending scheme that defrauded 20,000 retail investors in 2018, with $655 million “vanish(ing) into thin air”. On this news, Ebang shares dropped 9.3% in premarket trading. A federal securities fraud lawsuit was filed against Ebang on April 8, 2021 in New York Southern District Court.

Lead Plaintiff deadline
June 7, 2021
class period
June 26, 2020
to
April 5, 2021
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