Trump-affiliated mining firm American Bitcoin pays $2.5 million to resolve PPP loan dispute

American Bitcoin, a crypto-mining venture launched last year and backed by Eric Trump and Donald Trump Jr., reported a $2.5 million settlement with the Justice Department concerning a Paycheck Protection Program loan originally granted to Gryphon Digital Mining. Gryphon, formerly known as Akerna, received a $2.2 million loan while classified as a cannabis-software provider, a use the SBA later deemed ineligible. Although the loan was forgiven in 2021, the agency reversed that decision in 2024 and considered a full denial, prompting a civil investigative demand.

In its first-quarter filing, American Bitcoin labeled the issue an unresolved contingency but confirmed cooperation with investigators. The settlement amount exceeds the original loan, indicating additional costs beyond repayment. Following the disclosure, the company’s stock rose nearly 5 percent, continuing a post-earnings rally.