American Bitcoin settles PPP loan dispute for $2.5 million
The settlement resolves a dispute over a $2.2 million PPP loan that Gryphon received when it operated as a cannabis software provider.
American Bitcoin will pay $2.5 million to settle allegations involving an improperly obtained pandemic relief loan inherited through its merger with Gryphon Digital Mining, the company disclosed in a quarterly filing.
The dispute stems from a $2.2 million Paycheck Protection Program loan issued to Gryphon when it operated as a software provider to the cannabis industry. Although the loan was forgiven in 2021, the Small Business Administration rescinded that decision in 2024 and the Justice Department launched a civil investigation into the matter.
The settlement follows American Bitcoin’s acquisition of Gryphon, which transferred the company’s legal liabilities to the bitcoin miner. The settlement amount exceeds the original loan value, indicating additional costs beyond repayment.