A legal firm located in New York has said it has launched an investigation into whether or not Bitcoin miner Core Scientific and its leadership may have been involved in securities fraud and other criminal trading activities that led to many cases of price crashes. of his actions.

According to the securities class action firm Pomerantz LLP, the investigation was prompted by a Culper Research report in 2022. The report alleged that Core Scientific had vastly oversold its mining and business hosting in 2021 and also waived a 180-day lockup period on more than 282 million shares, making them free to be dumped in March. Together, these allegations suggested that Core Scientific was responsible for launching the investigation.

According to this report, Core Scientific experts had “abandoned any pretense of compassion for minority shareholders.” It was noted that as a result of this disclosure, Core Scientific’s share price plunged 9.4 percent on March 3.

Additionally, the law firm drew attention to an event that took place on September 28. That day, cryptocurrency lender Celsius Network filed a motion with the bankruptcy court, accusing Core Scientific of violating automatic stay provisions, adding improper surcharges, and failing to meet its contractual obligations.

In a final incident, the law firm said on Oct. 27 that Core Scientific announced that given the uncertainty about the company’s financial situation, there are substantial doubts about the company’s ability to continue, revealing that it only had 24 Bitcoin in compared to 1051 BTC on September 30. The law firm said this was the final incident.

According to the company, Core Scientific’s share price plummeted as a result of the announcement, reaching a closing price of $0.22 per share, representing a 78.1% decline.

Pomerantz LLP has said that it is exploring these allegations on behalf of Core Scientific investors and has extended an invitation to all investors who wish to participate in a future class action lawsuit.

On December 13, the same law firm filed a class action lawsuit against Silvergate Capital for making materially false and/or misleading statements and failing to disclose material adverse facts about the Company’s business, operations and prospects. The lawsuit alleges that Silvergate Capital made materially false and/or misleading statements and failed to disclose material adverse facts.