Pomerantz Law Firm Investigates Potential Securities Fraud by ETHZilla Corporation for Investors

Investor Alert: Investigating ETHZilla Corporation Claims

Pomerantz LLP has commenced an investigation related to ETHZilla Corporation, a publicly traded entity on NASDAQ under the symbol ETHZ. The spotlight on ETHZilla arises from potential securities fraud and misleading business practices that may have impacted investors.

On December 19, 2025, following the close of the market, ETHZilla announced the sale of approximately 24,291 Ether (ETH) for around $74.5 million. The company indicated that this capital would be utilized primarily to redeem outstanding senior secured convertible notes. Furthermore, they hinted at pursuing various capital-raising strategies, including potential equity offerings and further ETH sales. This information triggered a significant reaction within the investment community and also drew scrutiny from legal representatives.[^1]

Key Developments

The turmoil for ETHZilla did not end there. Just days later, on December 22, 2025, ETHZilla offered insights into its future strategy, asserting that its growth would be driven by revenue from the tokenization of real-world assets (RWA). Investors reacted promptly, leading to a stock price drop of $0.60 per share—a sharp decline of 8.70%, culminating in a close at $6.30 the same day. These developments ignited concerns about the integrity of ETHZilla's communications and overall business practices, prompting Pomerantz LLP to take action on behalf of affected shareholders.

Pomerantz LLP's Commitment

With a long history in corporate litigation, Pomerantz LLP is well-regarded for advocating the rights of investors against corporate misconduct. Founded by the late Abraham L. Pomerantz, the firm specializes in cases affecting shareholders, including securities fraud and breaches of fiduciary duties. Over its 85+ years of existence, Pomerantz has successfully recovered substantial damages for class members, underscoring its commitment to investor protection.

If you are an investor in ETHZilla Corporation who has suffered losses, you are encouraged to reach out to Danielle Peyton at Pomerantz LLP. They are actively seeking additional claimants to fortify their case and would advise any individual or institutional investors to make contact for potential inclusion in the ongoing investigation.

Taking Action

The investigation is currently focusing on the actions of ETHZilla and its executive management. As more information comes to light, impacted shareholders should stay informed about their legal options. For those wishing to connect with Pomerantz LLP regarding this investigation, you can do so by email at [email protected] or via phone by calling 646-581-9980, extension 7980.

Conclusion

As the situation unfolds, it remains critical for investors to seek the necessary legal recourse to protect their interests. Pomerantz LLP is poised to assist ETHZilla investors in navigating this complex scenario, emphasizing accountability and transparency in corporate governance as fundamental principles in the investment landscape.

^1]: [Full Ethzilla details available here.