Bitmain head accused of fraud

Bitmain co-founder Micree Zhang accused Jihan Wu of illegal activities, misusecompany funds, forgery of signatures and illegal seizure of power.

The co-founders' quarrel complements the serieslayoffs, regulatory interventions and an unsuccessful IPO attempt at one of the largest Chinese blockchain companies. The situation is at an impasse. It is currently unknown who will lead Bitmain in the future.

The power struggle at Bitmain continues.Ousted Bitmain co-founder Micree Zhang shared a list of illegal activities that the company's current CEO and co-founder Jihan Wu engaged in. 

Mikri Zhang claims to own 36%Bitmain, which give him 59.6% of the vote when making any decisions. Zhang is confident that voting for a change of power without his participation is impossible. However, Cihan Wu has the minutes of the meeting of shareholders at which Zhang was stripped of his voting rights and was removed from his post as director of the company. Mikri Zhang claims that this meeting did not take place, and Wu simply seized Bitmain and stole a business license along with the seal of an office in Beijing to falsify documents.

 If the charges can be proven in court, howZhang plans, Jihan Wu will be in serious trouble. To the series of charges of hostile takeover of the company, Zhang adds charges of illegal disposal of company funds and property and dissemination of false information.

Bitmain's problems began in October 2019.when CEO and co-founder Jihan Wu kicked out Micree Zhang – another co-founder of the company. The war between the founders arose due to differences in views on the development direction of Bitmain. Zhang believes that the company should pursue an artificial intelligence strategy, while Wu wanted to focus only on mining.

After an unsuccessful IPO, Wu left the company, butreturned with the support of shareholders, and legally regained control of the company. However, on May 8, a fight broke out in the office after local authorities tried to transfer the current company license to ousted co-founder Zhang.

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