Montana's securities regulator is coming after Vbit Technologies, a crypto scheme that bilked over 15,000 investors out of at least $11 million.

Troy Downing, head of Montana's Commission of Securities and Insurance, issued an administrative order on February 18th giving Vbit Technologies 15 days to register with the state and identify itself as an MLM operation. The company faces a $15,000 fine and investor restitution if it refuses to comply.

Vbit Technologies launched in 2018 under founder and CEO Danh Vo, also known as Don Vo. The scheme worked like most crypto MLM frauds: affiliates bought mining packages for up to $50,000 each, promised daily returns on their investment. The company claimed these packages would generate new Bitcoin that would be regularly deposited into digital wallets. Participants could also earn commissions by recruiting others into the scheme, with payouts across seven levels.

The money kept flowing until May 2022, when the cryptocurrency market crashed and Vbit Technologies officially collapsed.

But Vo had already made his exit three months earlier. In January 2022, he cashed out and vanished. His cover story was a $105 million acquisition by Advanced Mining Group, a supposed Asian-based bitcoin mining company. The deal allegedly closed on January 31, 2022. Vo updated his LinkedIn profile to say he was "retired for life" and disappeared.

What actually happened was textbook Ponzi collapse. Vo had abandoned the scheme and whoever took over simply relaunched it under a new name.

Advanced Mining became the reboot operation. Unlike Vbit Technologies, the new version dropped the MLM structure and operated as a straight Ponzi that promised returns on mining investments. The operation was short-lived. When it stopped paying investors, Advanced Mining pulled an exit-scam by blaming COVID-19 for its shutdown.

Vo, believed to be a permanent U.S. resident, last listed his location as Philadelphia, Pennsylvania. Whether he remains in the country is unclear.

Montana's CSI investigation shows the scope of the fraud. Over 15,000 people lost at least $11 million to these schemes. The administrative order from Downing's office is the first formal action against the operators. If Vbit Technologies ignores the registration requirements, the company will be declared in default and hit with financial penalties. More importantly, the ruling could open the door for investors to recover their money.

🤖 Quick Answer

What is Vbit Technologies and how did it operate?
Vbit Technologies is a cryptocurrency multilevel marketing scheme founded in 2018 by Danh Vo that defrauded over 15,000 investors of at least $11 million. Affiliates purchased mining packages costing up to $50,000, receiving promises of daily returns and automatic Bitcoin deposits into digital wallets through purported cryptocurrency mining operations.

What action did Montana's securities regulator take against Vbit Technologies?
Troy Downing, head of Montana's Commission of Securities and Insurance, issued an administrative order on February 18th requiring Vbit Technologies to register as an MLM operation within 15 days. Non-compliance results in a $15,000 fine and mandatory investor restitution obligations.

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