A report says just 13% of the funds were deployed into mining, raising questions about how much capital participants may ultimately recover.
An alleged $22 million mining scheme has left 380 investors facing uncertain recovery prospects after a report said only 13% of the money was put into mining. The gap between funds raised and funds reportedly deployed is central to the case because mining operations typically require large upfront spending on equipment, power and hosting, and lower-than-expected deployment can signal misuse or diversion of investor capital. With recovery now in doubt, the focus is likely to turn to where the remaining funds went and whether any assets can be traced for repayment.