October 1, 2022

Founder of rival Bitmain company arrested in China for embezzlement

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Yang Zuoxing, founder and CEO of MicroBT, a mining company, was arrested on charges of embezzlement of $ 15,000. This is reported by the local Caixin publication.

The arrest occurred against the backdrop of the ongoing race between mining giant Bitmain and its rival MicroBT, which this year was able to challenge Bitmain's dominance in the market.

According to Caixin, the arrested is reallyfounder and CEO of MicroBT, which produces WhatsMiner miners with a market share of about 40%. The statement said that the estimated amount of theft is 100,000 yuan, or about $ 15,000.

It is noteworthy that Yang was detained by the police after Cihan Wu regained control of Bitmain. crowding out its competitor co-founder and chairman Mikri Jean.

Although the prosecutor did not specify whetherThe alleged embezzlement of Ian’s own company or his former employer Bitmain, the article says it followed Bitmain’s escalation of a failed civil lawsuit against Ian.

Ian previously held a senior position at Bitmain, responsible for developing the flagship AntMiner S7 and S9 models around 2016.

Ian left the company and created MicroBT afterI couldn’t come to an agreement with Bitmain co-founders regarding the distribution of the company's share capital. In 2017, Bitmain filed a civil lawsuit against Ian and MicroBT, claiming he violated the patent granted by Bitmain for Bitcoin mining equipment.

In October 2018, Yang's team successfully revoked the patent issued by Bitmain, and therefore the civil case was terminated.

Recall last week MicroBT released its latest WhatsMiner M30 product, which has a processing power of 88 Th / s.