The risk of cryptocurrency mania is not limited to the volatile price of coins and tokens. OTC market companies touting the usage of crypto technology have also added to the hype. Now, MGT Capital (OTCQB:MGTI), the operator of one of the largest US-based crypto mining facilities, is facing a class action lawsuit for deliberately organizing pump-and-dump events for its shares.
Much like the movement of Bitcoin (BTC) prices, the price of MGTI stock rose to a peak around $7 in December 2017, and went on to slide, crashing to current levels of around $0.13. This is typical behavior of penny stocks that affects other small-scale companies on the OTC markets. However, blockchain-based companies had their special day of attention, adding to the risk.
In addition to the class action lawsuit by former MGTI owners, the firm is under investigation by the US Securities and Exchange Co…
This article appeared first on Cryptovest
https://86x.com/mgt-capital-faces-lawsuit-over-penny-stock-pumps/
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