Bitmain Calls Ex Co-Founder’s Claims of Holding 36% Equity Baseless

Bitmain releases a public statement saying that co-founder Zhan’s claims of owning a 36% stake in Fujian Zhanhua are baseless.

The world’s largest cryptocurrency mining rig producer Bitmain released a statement on April 27 condemning deposed co-founder Micree Ketuan Zhan’s attempts to regain control over Fujian Zhanhua Intelligence Technology Co. Ltd.

In an email on October 29, 2019, co-founder Jihan Wu disclosed that he was dismissing his Bitmain partner and chairman Micree Zhan. He also issued a strict warning to all Bitmain staff not to contact or attend meetings with Zhan.

Following his dismissal, Zhan resorted to legal measures to regain his position at Bitmain. He has so far filed two complaints against Bitmain and its subsidiary Fujian Zhanhua Intelligence Technologies.

“I will fight for her [Bitmain] till the end with legal weapons. I won’t allow those who want to plot against Bitmain to succeed. If someone wants a war, we will give them one.”

Zhan’s claims lack facts or legal proof, says Bitmain

Micree Zhan sued Fujian Zhanhua Intelligence Technologies claiming that he owned 36% of the company’s equity. However, Bitmain said in their latest statement addressing the case that Zhan had submitted no proof of the same, which makes his claims baseless in front of the law.

The English translation of the statement also clarified:

“The ruling reported by the media is only a procedural jurisdiction ruling, that is, the Fuzhou Intermediate People’s Court finally ruled that the case should be tried by the Fuzhou Changle District People ’s Court.”

There has not been any hearing related to the case, let alone a final judgement, mentioned Bitmain.

Bitmain will stay unaffected by the rulings of the case

In a seemingly gentle effort to retain people’s trust in Bitmain, the company specifically mentioned that the results of the case will not have any impact on Bitmain’s production or operation. Fujian Zhanhua, too, will be under the absolute control of Bitmain, the statement assured.

It is, however, interesting to note that Bitmain hasn’t been performing at its best since last year. On January 02, 2019, Cointelegraph reported that Bitmain was planning to cut 50% of its staff while dealing with other legal complications.

At the moment, the fate of the largest mining company seems murky due to company politics and ongoing legal complications. It’s likely that the upcoming Bitcoin (BTC) halving will only worsen the situation.

Source: Bitmain Calls Ex Co-Founder’s Claims of Holding 36% Equity Baseless.