Bitmain, the top hardware producer for crypto-mining, is in the midst of chaos according to multiple reports.
The company posted a statement today attempting to clarify company representation (translated):
Beijing Bitmain Technology Co., Ltd. (hereinafter referred to as “Beijing Bit”) is a wholly foreign-owned enterprise, and its sole shareholder is Bitmain Technologies Limited (hereinafter referred to as “Hong Kong Bit”) registered in Hong Kong, China.
On October 28, 2019, the only shareholder of “Beijing Bit”, “Hong Kong Bit”, made a shareholder decision to remove the executive director of the Jenke Group and the qualification of legal representative. Subsequently, the “Beijing Bit” and the Jenke Group terminated the labor contract.
At present, the Zhanke regiment no longer holds any position in “Beijing Bit”. The public registration of the market supervision department shows that the Jenke group is the legal representative of our country, which is a registration error and seriously violates the provisions of the “Company Law”. Liu Luyao is the current legal representative of “Beijing Bit”.
During this period, our company will not recognize any acts that the Jenke Tuan pretended to be the legal representative of “Beijing Bit” illegally, and reserves the right to pursue the Jenke Tuan and related legal responsibilities.
Dovey Wan, well-known in the crypto-world, shared a series of Tweets on the conflagration:
😂 this is insane .. the Bitmain shitshow is far beyond my imagination
Today China time ~3:30PM, Jihan’s good buddy, former legal representative of Bitmain Luyao LIU was arrested by Beijing police …
— Dovey 以德服人 Wan 🪐🦖 (@DoveyWan) May 8, 2020
Caixin reported on the struggle regarding control of the company’s business license.
According to CoinDesk, Bitmain co-founder Micree Ketuan Zhan, who was ousted by Wu Jihan in 2019, attempted to “recover his status” as the legal representative for Bitmain.
Apparently, things did not go well.
Dovey Wan said the drama, or “Bitmain Shitshow,” was trending nationally in China.
All of this for a company that was attempting to initiate an initial public offering and list its shares on an exchange several months back.
The dispute between the different parties arrived following reports that Bitmain was distributing mining hardware with high failure rates – just as the Bitcoin halving will take place next week.