Media: Bitmain Cancels Plans For An IPO Conducting
The media reported that the IPO of the largest mining hardware manufacturer of Bitmain canceled. This decision made because of the audit, organized by the US Department of Justice (DOJ). Information was obtained from insiders. According to the latter, the regulator’s specialists are studying the company's activities.
First, the information was shared on the Internet by the popular in the crypto community BTCKING555 blogger. According to the data, DOJ was interested in the episode of the sale of Bitmain hardware to the organizers of the BitClub pyramid. At the press time, there was no reaction to information from the organization.
Breaking: Bitmain to cancel its USA IPO plans. Insider tells there is investigation by American DOJ on Bitmain selling huge amount of equipment to ponzi scheme BitClub with Bitmain’s Yoshi Goto playing key role! Some of those sales numbers were apparently fudged to accomodate
— BTCKING555 (@btcking555) January 13, 2020
Earlier it became known that they wanted to deprive Jihan Wu of CEO Bitmain before the company's IPO. Micree Zhan, the co-founder of the largest manufacturer, intends to return to his former position. This information appeared on WeChat of the specialist. One of the first to draw attention to the news was Blockstream Strategic Director Samson Mow.
Micree Zhan just sent a open letter to all Bitmain employees confirming that he was removed as the legal representative of the company without consent, and that he will take back control of the company through legal channels, the specialist described the situation in his microblog, accompanying the post with the hashtag # Bitmaindrama.
Recall, last week, one of the Bitmain co-founders Jihan Wu, informed all company employees that Micree Zhan was fired from all his posts. The media also received information about the ban on the interaction of the team of the manufacturer of mining hardware with a specialist.
During the reshuffles in the leadership, Jihan Wu took up the position of CEO and legal representative of the company again, having removed Micree Zhan from his posts. Note, that the changes occurred against the background of the preparation of Bitmain for the IPO. Recall that at the end of October, the company’s team filed an application for an initial public offer to the US Securities and Exchange Commission (SEC). Information about this appeared a day after the resumption of duties of Jihan Wu to Bitmain.
According to Micree Zhan, the decision to remove was taken during his business trip. The specialist said that he was not aware of the preparation for the change of personnel. The suspended co-founder of Bitmain believes that the problem also lies in the fact that in the course of his work he did not think about the legal component of the issue. At the moment, he is ready to transfer the proceedings to court.
According to the specialist, he intends to return to the company as soon as possible. We will remind, earlier it became known that Jihan Wu launched a platform for over-the-counter trading.