June 25, 2024

Mikri Zhang filed a new lawsuit against Bitmain

According to a notice from the Changle District Court located in China's Fujian Province, co-founderBitmain Mikri Zhang filed another lawsuit in an attempt to regain control of the mining company.

Lawsuit filed against subsidiaries Bitmain FujianZhanhua Intelligence Technologies and Beijing Bitmain Technologies, both related to third-party Bitmain. The hearing was scheduled for February 11, but it did not take place due to the active spread of coronavirus. The court noted that the case was related to a “dispute regarding the confirmation of the qualifications of shareholders”.

The same court sided with Zhang in Decemberlast year, approving a motion to protect his assets. The full text of the decision was published only last Thursday. It was decided to freeze 36% of Fujian Zhanhua in a Bitmain-owned stake worth 10 million yuan ($ 1.44 million). Zhang owns 36% of Bitmain Technologies Holding, which means he owns 36% in the subsidiary. The value of the assets may seem insignificant for Bitmain, however, first of all, it is worth paying attention to the impressive share of ownership of Zhang in the parent company.

An interesting fact is that Zhang went to court toFujian, not Beijing, where the main legal entity of the company is located in China. This may indicate that he has chosen a specific strategy to regain control of Bitmain and has already begun to implement it. He is still the legal representative of Fujian Zhanhua, one of the four divisions of Bitmain, which brings the largest revenue to the company. It is a cryptocurrency mining equipment sales center in China.

In December, Zhang went to court on the Caymanthe islands where the parent company Bitmain is located. He asked to cancel the decision of the shareholders, according to which his authority was significantly reduced. His lawyers claim that Zhang did not know about the shareholders meeting at which his rights in the company were restricted.