American Bitcoin Settles DOJ Probe Over $2.5M Pandemic Loan

American Bitcoin, a mining company linked to the Trump family, has agreed to pay $2.5 million to settle allegations that it improperly received pandemic relief funds.

The U.S. Department of Justice (DOJ) had been investigating American Bitcoin's predecessor, Gryphon Digital Mining, which obtained a Paycheck Protection Program (PPP) loan in 2020 as a cannabis-related software company.

However, the Small Business Administration later determined that Gryphon Digital Mining was not eligible for the loan and reversed its loan-forgiveness decision in 2024, prompting the DOJ investigation.

The settlement is relatively modest compared to American Bitcoin's overall financial performance. The company reported its strongest-ever quarterly Bitcoin mining results, which helped boost investor confidence and led to a 5% increase in stock price after the announcement.