Investors in cryptocurrency mining company Argo Blockchain have filed a class-action lawsuit, claiming that the miner lied and left out valuable information during its initial public offering (IPO) in 2021.

On Jan. 26, a new lawsuit was filed against Argo and a few of its top executives and board members. It says the company didn't say how vulnerable it was to problems with money, electricity costs, and networks.

The lawsuit said, 'The offering documents were made carelessly, and as a result, they made false statements about important facts or left out other facts that were needed to make the statements not misleading.'

The investors contend that this means the miner's financial prospects were exaggerated since the firm is 'less sustainable' than they were led to expect. The complaint mentioned:

If the investors had known the truth, they wouldn't have spent their money on the securities in the first place, and they certainly wouldn't have paid the inflated prices that were paid for them.

On September 23, 2021, Argo disclosed the aforementioned data in IPO-related filings with the United States Securities and Exchange Commission (SEC).

On that same day, 7.5 million shares were issued to the public at an offering price of $15, bringing in $105 million before expenditures.

The stock of the mining company has taken a pounding since then, dropping to a low of $0.36 per share before recovering to its current price of $1.96.

The lawsuit was filed only a few days after Argo recovered compliance with Nasdaq's listing criteria on January 23, which mandates that a firm must have a closing bid price of at least $1 for 10 consecutive trading days in order to remain listed.

Because of the prolonged bad market and the challenging circumstances that cryptocurrency miners are currently facing, Argo has had to make some painful decisions. In a press release dated December 28th, 2022, the company revealed that it would be selling its flagship mining facility, Helios, to digital asset investment manager Galaxy Digital for $65 million.

In 2022, crypto miners generally had a bad year, as rising electricity costs, dropping cryptocurrency prices, and higher mining difficulty all ate into their profits.