1. Pomerantz LLP is investigating ETHZilla for potential securities fraud. 2. ETHZilla sold 24,291 Ether for $74.5 million to address debt. 3. Company plans to focus on tokenization of real-world assets for growth. 4. Stock price dropped 8.70% following these disclosures. 5. Investors may join a class action against ETHZilla for possible misconduct.
FAQ
Why Bearish?
The ongoing investigation and recent stock price drop indicate investor uncertainty. Previous investigations in such contexts have often led to further declines and negative publicity.
How important is it?
The article outlines significant issues surrounding ETHZ's corporate governance and financial strategies, which are key for investors. This context makes it highly relevant for assessing future price movements.
Why Short Term?
The immediate effect of the investigation and stock drop typically influences prices quickly. Past incidents, such as similar investigations, have caused swift market reactions.
Pomerantz Law Firm Investigates Potential Securities Fraud Involving ETHZilla Corporation
NEW YORK, December 30, 2025 (GLOBE NEWSWIRE) – Pomerantz LLP has announced an investigation into claims concerning ETHZilla Corporation (NASDAQ: ETHZ) regarding potential securities fraud. Investors who may have been affected are encouraged to reach out to Danielle Peyton at newaction@pomlaw.com or call 646-581-9980, ext. 7980 for more details.
Background on the Investigation
The investigation focuses on whether ETHZilla and certain of its officers and directors have engaged in unlawful business practices that could constitute securities fraud. This scrutiny comes in light of recent financial disclosures made by the company.
Recent Financial Disclosures by ETHZilla
On December 19, 2025, ETHZilla disclosed after market hours that it had sold approximately 24,291 Ether (ETH) for an aggregate of $74.5 million. The company plans to use a significant portion of these funds to redeem its outstanding senior secured convertible notes. Furthermore, ETHZilla stated that it is evaluating various capital raising strategies, which may include additional ETH sales and equity offerings, as it works to advance its business plans that include the tokenization of real-world assets.
Later, during pre-market hours on December 22, 2025, ETHZilla reiterated that its future valuation is likely to be driven by revenue and cash flow growth stemming from its RWA tokenization initiatives.
Market Reaction and Implications
The announcements led to a significant impact on ETHZ's stock price. Following the disclosures, the stock experienced a decline of $0.60 per share, representing an 8.70% decrease, closing at $6.30 per share on December 22, 2025. This market reaction indicates increased investor concern regarding the company's financial practices and future strategies.
About Pomerantz LLP
Pomerantz LLP is recognized as one of the leading law firms specializing in corporate, securities, and antitrust class litigation. Established by the late Abraham L. Pomerantz, who is often referred to as the dean of the class action bar, the firm has a legacy of advocating for victims of securities fraud and corporate misconduct for over 85 years. Pomerantz has successfully recovered numerous multimillion-dollar damages on behalf of class members.
For more information about this investigation or to learn more about joining the class action, visit www.pomlaw.com.
Contact Information
- Contact: Danielle Peyton
- Firm: Pomerantz LLP
- Email: dpeyton@pomlaw.com
- Phone: 646-581-9980 ext. 7980