The Hut 8 class action lawsuit is a federal securities fraud case filed in February 2024 accusing the bitcoin miner of misleading investors about assets it acquired in its November 2023 merger with US Bitcoin Corp (USBTC). In September 2025, a Manhattan federal judge threw out most of the claims but kept the case alive on a narrow set of allegations about energy and internet failures at a Texas mining facility.
What Investors Alleged
The complaint, Mayiras v. Hut 8 Corp., et al., Case No. 1:24-cv-00904, was filed on February 7, 2024, in the U.S. District Court for the Southern District of New York.1Bernstein Liebhard LLP. Mayiras v. Hut 8 Corp. Class Action Complaint It was brought under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and named Hut 8 Corp. along with former CEO Jaime Leverton and CFO Shenif Visram.
The proposed class covers investors who bought Hut 8 shares between November 9, 2023, and January 18, 2024.2Glancy Prongay & Murray LLP. Hut 8 Corp Securities Fraud Class Action Plaintiffs allege the company and executives made materially false or misleading statements and failed to disclose several problems tied to USBTC:
- One of USBTC’s largest shareholders was an undisclosed related party.
- The King Mountain joint venture in Upton County, Texas, USBTC’s core asset, had suffered persistent failures in reliable energy supply and high-speed internet, reportedly forcing the site onto Starlink satellite service.
- Hut 8 failed to account for roughly $3.2 million in interest expenses related to the King Mountain JV, inflating the asset’s apparent profitability.
- Positive statements about the business and its prospects lacked a reasonable basis.
The complaint also picked up J Capital Research’s estimate that USBTC was worth about 70% less than the roughly $745 million Hut 8 effectively paid for it, and that USBTC had been close to bankruptcy before the deal.1Bernstein Liebhard LLP. Mayiras v. Hut 8 Corp. Class Action Complaint
What Triggered the Case
The suit followed a January 18, 2024, report from short seller J Capital Research that called Hut 8 an “over-levered pump and dump” and argued USBTC’s true value was up to 75% less than what Hut 8 paid.3J Capital Research. Hut 8 Corp Research Page The report flagged the alleged related-party shareholder and operational problems at King Mountain, and it linked Hut 8 management to promoters previously accused by the SEC of fraudulent stock promotion.4J Capital Research. Hut 8 Corp Research Report
Hut 8 shares dropped $2.16, or 23.3%, to close at $7.12 the day the report came out.5GlobeNewsWire. Hut 8 Alert: Bragar Eagel Squire Is Investigating Hut 8 Corp The company pushed back on January 24, calling the report “a deliberate attempt to spread misinformation about Hut 8, its operations, finances, management practices, and key executives.”6Nasdaq. Hut 8 Corp Responds to Misleading Short Report Two weeks after that, on February 6, 2024, Hut 8 terminated CEO Jaime Leverton without cause and appointed President Asher Genoot to replace her.7U.S. Securities and Exchange Commission. Hut 8 Corp Form 8-K The class action was filed the next day.
The September 2025 Ruling: What Survived
After consolidation of related cases in April 2024 and a consolidated amended complaint in June 2024, the case proceeded before Judge Victor Marrero.8Stanford Law School Securities Class Action Clearinghouse. Hut 8 Corp. Securities Litigation Filing
In September 2025, Judge Marrero granted most of the defendants’ motion to dismiss. The court found that the allegations tied to misleading disclosures about the merger itself were “inactionable forward-looking” statements, a category the securities laws shield from liability.9Bloomberg Law. Bitcoin Miner Hut 8 Gets Most Merger Conflict Claims Dismissed That knocked out the bulk of the case, including claims tied to the alleged overvaluation of USBTC and the related-party shareholder allegations.
One category of claims survived: allegations that Hut 8 misled investors about the energy and internet connectivity problems at the King Mountain mining facility, which USBTC had part-owned before the merger closed.10Law360. Bitcoin Miner Hut 8 Beats Some Merger Disclosure Suit Claims Those claims will carry the case forward.
Where the Case Stands Now
As of early 2026, No. 24-cv-00904 remains pending in the Southern District of New York before Judge Marrero.8Stanford Law School Securities Class Action Clearinghouse. Hut 8 Corp. Securities Litigation Filing There is no settlement, and the litigation is now in its post-dismissal phase, likely heading into discovery on the surviving King Mountain claims. No SEC or other regulatory enforcement action has been reported in connection with these matters.
Separately, in February 2026, law firm Bragar Eagel & Squire announced an investigation into whether Hut 8’s board of directors breached fiduciary duties in connection with the merger and the alleged misstatements. The firm said the inquiry arises from the same facts underlying the class action and invited long-term stockholders to contact it.5GlobeNewsWire. Hut 8 Alert: Bragar Eagel Squire Is Investigating Hut 8 Corp That is a separate potential derivative matter, not part of the Mayiras securities class action.