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Bitmain Investors Are Going To File A Class Action Lawsuit Against The Company

One of the most vocal critics of the mining giant Bitmain, user  under nick BTCKING555, said on Twitter that a number of investors are preparing a class action lawsuit against the company in Hong Kong jurisdiction with the goal to refund their investments after the expiration of the IPO application.

He also claims that last summer Bitmain raised $ 700 million, and that it alone saved the company from bankruptcy. Nevertheless, investors hoped that with the release of an IPO, the value of their share would increase significantly, which has not happened yet.

At the moment, according to Blockstream’s CTO Samson Mou, Bitmain is in debt to contractors and suppliers, and sells Antminer S15 devices at a loss to cover at least part of the costs. Moreover, the new 7-nanometer chip is allegedly not viable.

Recall Jihan Wu left the post of CEO, but left behind a chair on the board of directors. The company promises to re-apply for an IPO in the future.