U.S. judge rejects SEC allegations that Bitcoin mining company MGT CEO violates securities laws

U.S. District Judge Edgardo Ramos dismissed the SEC's allegations against Bitcoin mining company MGT Capital Investments CEO Robert B. Ladd for breaching securities laws. The SEC claims that because Ladd did not mention the existence of a small group of investors who collectively held more than 5% of its bitcoin mining business. Although the company planned a $ 27 million "pump-and-dump" plan involving MGT and two other companies, the judge said that Ladd is not obliged to disclose ownership of its stock under current regulations Details. However, he did conclude that by revealing Ladd's long-term relationship with the investor group, the SEC fully explained that Ladd was involved in the plan, including paying writers to let them use false reports to promote MGT.