Company denies any misconduct linked to its 2023 merger with U.S. Bitcoin Corp.
By James Van Straten, AI Boost|Edited by Sheldon Reback Jun 23, 2026, 9:57 a.m. 1 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on (Ralf Kleeman/Shutterstock)SummaryShow- Hut 8 has agreed to a $2.35 million settlement in a lawsuit claiming the firm did not adequately inform investors about operational difficulties at a crucial mining project obtained through its merger with U.S. Bitcoin Corp.
- This settlement, pending court approval, resolves a securities class action that arose after a notable decline in share prices following a negative report from a short seller in early 2024.
Hut 8 (HUT), a former bitcoin mining company, has consented to pay $2.35 million as a settlement for a securities class action that accused it of misleading investors regarding its merger with U.S. Bitcoin Corp. (USBTC) in 2023.
The lawsuit was initiated in the U.S. District Court for the Southern District of New York, focusing on Hut 8's all-stock merger with USBTC, which concluded in November 2023.
Investors contended that the company, which has shifted its focus to AI data centers and high-performance computing, exaggerated the merger's advantages while neglecting to reveal ongoing energy limitations and connectivity problems at King Mountain, a bitcoin mining partnership in Texas where USBTC had a 50% stake.
The lawsuit gained traction after J Capital Research released a damaging report in January 2024, which led to a more than 23% drop in Hut 8's stock price.
According to legal documents, the settlement amount of $2.35 million accounts for about 19.6% of the total estimated recoverable damages, which is higher than the median of 12.9% and the average of 14.6% for settlements related to the Securities Act in 2025.
As part of the settlement, Hut 8 maintains that it has committed no wrongdoing or liability. Over the past year, Hut 8's stock has surged by over 640%.
Bitcoin MiningAI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.Latest Crypto News- 1Bitcoin price has limited downside, likely near bottom, contrarian indicator suggests1 hour ago
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CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
By CoinDesk ResearchJun 15, 2026In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
Why it matters:
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
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