Prominent Bitcoin mining equipment manufacturer, Bitmain once again faces managerial issues as ousted co-founder puts a hold on shipping mining equipment to paid customers for reasons that are still unknown.
Down The Bitmain Alley
While the world has been recovering from a disease as outrageous as Covid-19, things in the Chinese crypto space doesn’t seem to have changed one bit. The infamous conflict between the Co-founders of Beijing-based mining equipment manufacturing company, Bitmain seems to have taken a step ahead, in the wrong direction.
In October 2019, Bitmain’s co-founder, Jihan Wu had ousted Micree Zhan from his position as the Executive Director. Zhan was quick enough to resort to legal means to regain his position at the company. Many lawsuits later, Zhan was recently seen taking over the Beijing office as the legal representative with private guards. Even though Jihan Wu denounced Zhan’s physical take over of the firm, Zhan remained successful in executing his plan.
Co-founders’ Tiff Continues
As per more recent updates, issues regarding shipment of products from the Shenzhen mining machine delivery factory was reported by the Chinese media outlet, BlockBeats. Zhan who had recently taken control over the delivery factory has reportedly been forbidding employees from dispensing products to customers who have already paid for it. Even though Zhan’s motive behind this move remains uncertain, Wu issued a statement about the same.
The statement revealed that the company would utilize legal channels in order to address Zhan’s latest move. Furthermore, the statement stressed that any sort of arrangements made further would focus on protecting the employees. The letter translates,
“The legal rights and interests of the workers come first.”
Bitmain seems to be drowning in troubled waters as the conflict between the co-founders seems to be getting worse with time. Back in April Zhan was also called out for disregarding the concerns of the company during the time of Covid-19. Despite being one of the largest ASIC mining equipment manufacturers, Bitmain was heavily criticized as Antminer S17, and Antminer T17 had reported a failure rate of 20-30% just two weeks before Bitcoin’s third halving.
Bitmain’s hierarchical issues have definitely had an impact on its progress. Several have been speculating that if this conflict prevails, Bitmain could be paving its way to an inevitable end.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at firstname.lastname@example.org