Bit Digital, a Nasdaq-listed mining company owned by Yuhong, was sued, and the senior management team was "reshuffled"

According to BlockBeats, on February 4, Nasdaq-listed mining company Bit Digital (BTBT) announced that its board of directors had removed Min Hu from his position as CEO. The Bitcoin mining company also said that Ping Liu resigned as chairman of the board for "health reasons."

Bit Digital said Chief Financial Officer Erke Huang will replace Min Hu as interim CEO, and board member Zhaohui Deng will be appointed chairman. In addition, the board also accepted Hong Yu's decision to resign as chief strategy officer and director.

Bit Digital did not give a reason for Min Hu’s removal, other than to say that he “was not involved in the company’s mining operations.”

The changes come as a class-action lawsuit against the mining company is underway. This follows a research report released by US short-selling agency J Capital Research, which accused the company of fraud. "Bit Digital reported at the end of the third quarter of 2020 that it claimed to be operating 22,869 Bitcoin mining machines in China, but this is just a lie," J Capital Research said. "They do not have a subsidiary in China because that is illegal and the machines will be confiscated."

J Capital Research said it checked with local Chinese authorities and found that Bit Digital does not have any bitcoin mining infrastructure in the country. Even the company that said the mining company purchased new mining machines denied any such transaction.

Bit Digital was subsequently sued by investors for making false and misleading statements.

However, Bit Digital denied this statement. "We have not signed a lease contract for the Bitcoin mining facility. This is to reduce utility costs, and the mining facility is maintained by our third-party supplier." Obviously, this statement failed to convince the plaintiff.

Bit Digital said it has hired two senior strategic advisors with experience in financial services, digital assets, and legal and regulatory affairs. Bit Digital said it expects the two advisors to become executives of the company after a transition period.

According to a previous report by Wu Blockchain, on September 8, 2020, Yu Hong, a celebrity in the cryptocurrency circle and founder of XMAX, acquired the predecessor of "Bit Digital" and renamed it, changing the trading code to "BTBT".