ETHZilla Investigated for Securities Fraud Amid $74.5 Million Fundraising Plans
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 22h ago
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Source: PRnewswire
- Securities Fraud Investigation: Pomerantz LLP is investigating whether ETHZilla and its executives engaged in securities fraud or other unlawful practices, potentially leading to significant investor losses and damaging the company's reputation and stock price.
- Fundraising Disclosure: On December 19, 2025, ETHZilla disclosed the sale of approximately 24,291 Ether (ETH) for $74.5 million, intended to redeem outstanding senior secured convertible notes, indicating urgency in its financial management.
- Stock Price Reaction: Following the fundraising announcement, ETHZilla's stock price fell by $0.60, or 8.70%, to close at $6.30 per share on December 22, 2025, reflecting market concerns about the company's future prospects.
- Future Business Outlook: The company stated that it aims to drive revenue and cash flow growth through its real-world asset (RWA) tokenization business, despite facing legal scrutiny and a lack of market confidence at present.
Analyst Views on ETHZ
About ETHZ
ETHZilla Corporation (ETHZilla) is a technology company in the decentralized (DeFi) finance industry. The Company offers tokenization solutions, DeFi protocol integration, blockchain analytics, traditional to digital asset conversion gateways, and other decentralized finance services. It connects financial institutions, businesses and organizations worldwide by accessible blockchain transactions through Ethereum Network protocol implementations and various DeFi protocols. It brings traditional assets on chain by tokenization and through its proprietary protocol implementations. The Company facilitates DeFi transactions and asset digitization across multiple Layers 2 Ethereum networks.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
