Bitcoin Investors Say Rhodium Failed to Disclose Texas Sale

A group of investors say a bitcoin mining company accepted their $33 million assistance without revealing that its Texas facilities were on the verge of getting sold to a much larger competitor.

Rhodium Encore had a duty to disclose the sale, the investors said in the lawsuit, advancing two counts of fraud.

“Frankly, it is hard to imagine a more material disclosure event, and had defendants disclosed this critical information, as they were required by law, plaintiffs would not have invested in the first place,” the investors’ lawsuit filed Thursday in Tarrant County district court said.

Rhodium also inflated ...