Reports from China indicate that senior executives of Canaan creatives, one of leading bitcoin miner manufacturer, have been fired. The purge at Hangzhou offices was instigated by Zhang Nan Geng—the founder. Xiangfu Liu, the co-founder, has also reportedly left the board.
Power Struggle At Bitcoin Miner Manufacturer Canaan
The in-fighting–as a Twitter user revealed, stems from the desire for control. This has seen executives of Canaan based in Beijing and Hangzhou clash. Those in Hangzhou appear to be the main casualties as some have been unceremoniously fired by Zhang.
Although intricate details explaining the source of the friction remain scarce, a source familiar with the scuffle revealed that there have been power struggles between the two offices.
In June–a source revealed, Zhang and executives from the Beijing office reportedly took the company’s seal and the business license of the Hangzhou office. Zhang then fired senior Canaan executives forcing them to report to the police.
Block Beats China reveals that Zhang has 15 percent control of equity and 72 percent in voting rights. Therefore, his power is cross-cutting and absolute. As such he can at any moment fire employees without consulting team members or the board.
Related news also shows that Canaan Creative’s ownership has changed and Tu Songhua, Li Jiaxuan, Sun Qifeng, and Kong Jianping have withdrawn from the board.
Besides, there have been changes to semantics and the Chief Executive title has been changed to the Executive Director. The good news is that the commercial operations of Canaan Creative remain normal.
Earlier reports of power struggle were also reported for another leading bitcoin miner manufacturer Bitmain where the CEO was accused for embezzlement. It is noteworthy to report that majority of Bitcoin miners are based in China and are going through disruptions in operations.
Canaan Bitcoin Miner’s $177 Million Misrepresentation
Already listed at NASDAQ, earlier this year, a report by Marcus Aurelius Value revealed that the company—vying for the top spot and contending with Bitmain, misrepresented its revenue projection for 2020.
It was blasted by the analytics firm, terming the Bitcoin miner manufacturer as “not competitive” due to the low allocation of funds for Research and Development. Given the dominance of Bitmain and inadequate funding, it classified its stock as unsuitable for investment.
Besides, it noted a conflict of interest since one of Canaan Creatives’ angel investor was also a shareholder of a $50 million Hong Kong-based company called Grandshores.
Grandshores, it is alleged, wasn’t in a position to honor its obligation and purchase $177 million worth of Canaan Creative ASIC equipment as earlier stated, thereby explaining the misrepresentation.
Source: Political Fights At Another Leading Bitcoin Miner Manufacturer, Co-founder Leaves Board