VBit Technologies, the South Philadelphia-based cryptocurrency mining company accused in mounting lawsuits of running a Ponzi scheme, is facing a crackdown from regulators in Montana, where it operated a data center.
Though many of the company’s 15,000-plus customers were located in the Philadelphia region, VBit’s warehouse in Columbia Falls, Mont., housed the expensive, energy-consuming mining computers they were leasing.Customers were told the devices, which process Bitcoin transactions, would generate a flow of new Bitcoin that was regularly deposited into digital accounts until around the time of cryptocurrency’s global crash in value in May.
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