Bitfarms ($BITF) Financial Restatement and Misclassified Crypto Cash Flows Case

The court has appointed the lead plaintiff to represent the class.

E.D. New York

Court

1:25-cv-02630

Case number

03/21/2023

Class period Start

12/09/2024

Class period End

07/08/2025

Lead Plaintiff motion deadline

$BITF investors filed a claim against Bitfarms for misstating its financials by misclassifying Bitcoin sales and failing to fix internal accounting weaknesses.
After revealing restatements for 2022–2024 and errors in classifying digital asset sales, $BITF fell over 6% on December 10, 2024.
$BITF investors can join this case to be notified about potential recovery.
Case Details:

Between March 21, 2023, and December 9, 2024, Bitfarms reported strong financial results and repeatedly told investors its internal controls were sound. The company said it was addressing a known issue related to how it classified certain 2021 warrants and promised that its remediation plan would be finished in 2024.

At the same time, Bitfarms incorrectly classified Bitcoin sales as operating cash flow rather than investing cash flow, which gave a misleading picture of the company's cash generation from its core mining business. The company also overstated its progress on improving its internal financial reporting controls.

On December 9, 2024, Bitfarms disclosed that its financial statements for 2022, 2023, and much of 2024 were materially inaccurate and would be restated. The company admitted it had misclassified digital asset proceeds and had also made errors related to 2023 warrant redemptions.

$BITF fell 6.07%  on December 10, 2024.

In April 2025, Bitfarms revealed that it still hadn’t fixed the internal weaknesses and would not complete its remediation until later in the year—contradicting earlier claims that the problem would be resolved by the end of 2024.

Based on these events, $BITF investors filed a claim against Bitfarms, accusing the company of the following:
It misclassified Bitcoin sale proceeds in financial statements, inflating reported cash flow.
It overstated progress in fixing known accounting control weaknesses tied to prior warrant errors.
Considering all the representations, investors believe Bitfarms misled the market by masking key financial flaws and delaying corrective disclosures.

Case Type

US Securities Class Action

Case Status

Lead Plaintiff Appointed

Alleged Offence

Misleading Statements,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

12/09/2024

Filing date

05/09/2025

Lead Plaintiff Deadline

07/08/2025

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