Nasdaq-listed Mining Company Bitfarms Faces Class Action Lawsuit for Failing to Timely Disclose Internal Control Deficiencies

Pomerantz LLP announced that the Nasdaq-listed mining company Bitfarms and some of its executives are facing a class-action lawsuit for failing to timely disclose significant deficiencies in their internal controls. The lawsuit was filed on May 9, 2025, in the Eastern District Court of New York, involving all investors who purchased or acquired Bitfarms securities between March 21, 2023, and December 9, 2024.

The complaint alleges that Bitfarms misclassified warrants issued in 2021 in its financial reports and failed to effectively control complex financing transactions, resulting in significant misstatements in its financial statements. On December 9, 2024, Bitfarms announced that its financial statements for 2022 and 2023 would need to be restated, as it incorrectly classified proceeds from the sale of digital assets as cash flow from operating activities instead of investing activities.