The share price of Chinese mining company Ebang Bitcoin (BTC) continues to fall as the company refutes allegations in a report by Hindenburg Research that it stole money from US investors.

A report by Hindenburg Research, published on 6. April was published, describing Ebang simply as the latest chapter in the Chinese scam disguised as bitcoin mining. The report alleges that Ebang raised hundreds of millions of dollars through public bids in the United States under the guise of bitcoin mining activities.

The money raised in the financing rounds was allegedly siphoned off by the company in a series of non-transparent transactions with insiders and dubious counterparties. Ebang calls itself the leading manufacturer of bitcoin mining machines, but according to Hindenburg Research, the company hasn’t released a new product since 2019, and sales have steadily declined since then.

Ebang, along with Canaan Creative, is one of only two Chinese bitcoin mining companies operating on US exchanges. NASDAQ stock price: EBON is down 20% since the beginning of the week. After a share price of $6.35 on Monday, the stock fell to $5 at the close of trading on Tuesday, a loss of 21%. Since then, the stock has rebounded to $5.03, resulting in a loss of more than 20% on a weekly basis.

The Hindenburg report claims that Ebang has seen the light at the end of the tunnel for its drilling operations, which reportedly produce machines that are inferior to those of local competitors. The company then reportedly turned into a cryptocurrency exchange called Ebonex. The original announcement apparently increased the EBON ceiling by $922 million.

Hindenburg researchers say they have discovered that the Ebonex exchange has been taken over by crypto-currency exchange provider Blue Helix, which offers custom exchanges with no upfront fees.

Since its launch a few months ago, Ebonex has miraculously achieved the highest trading volumes in the world, despite not having an online presence. His allegedly fictitious numbers are not recorded on cryptocurrency tracking sites like CoinMarketCap or CoinGecko, and Hindenburg sees the whole thing as another warning to inexperienced individual investors.

The report prompted an official response from Ebang International Holdings Inc. which said the report was full of speculation and unsubstantiated allegations. The statement said Ebang will investigate the allegations against Hindenburg and take the necessary steps to protect its investors.

Based on management’s analysis, we believe the Hindenburg Report contains numerous errors, unsupported speculation and an incorrect interpretation of events, the statement said.

He added: The Board of Directors, in cooperation with its Audit Committee, intends to further investigate and probe the allegations and misrepresentations contained in this document and will take all necessary and appropriate steps to protect the interests of its shareholders.

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