American Bitcoin settles PPP loan dispute with Justice Department for $2.5 million

The Trump-linked mining company disclosed the payment after inheriting Gryphon's legal liabilities, while its shares closed up about 5% after reporting record quarterly Bitcoin mining results.

BTC

21d ago

Fact Check

Every element of the claim is corroborated. Forbes, CryptoBriefing, and CoinNess independently report the $2.5 million DOJ settlement over the $2.2M PPP loon originally obtained by Gryphon Digital Mining, which merged with American Bitcoin. The SEC 10-Q primary filing confirms the PPP loan dispute (SBA forgiveness review and DOJ civil investigative demand), the Gryphon merger, and record quarterly mining revenue. The ~5% share increase following record quarterly results is reported by Forbes and CoinNess. No conflicting evidence was found.

Summary

American Bitcoin, a cryptocurrency mining company linked to Eric Trump and Donald Trump Jr., said it settled a Justice Department allegation over the improper receipt of a pandemic relief loan, agreeing to pay $2.5 million. The matter traces back to Gryphon Digital Mining, whose liabilities American Bitcoin inherited after merging with it last year. The U.S. Small Business Administration determined Gryphon, then a cannabis-related software company, was not eligible for a Paycheck Protection Program loan and reversed its loan-forgiveness decision in 2024. American Bitcoin disclosed the settlement in the notes to its quarterly report while also posting its strongest-ever quarterly Bitcoin mining results, and the stock closed up about 5% after the report.

Terms & Concepts

Paycheck Protection Program: A U.S. pandemic relief program that offered potentially forgivable loans to eligible businesses.
cryptocurrency mining: The process of using computing power to validate network activity and earn newly issued tokens.
loan forgiveness: Cancellation of a loan obligation when a borrower meets a program's required conditions.