The struggle for power in Bitmain reaches a new level

The power struggle between Bitmain’s two co-founders, Micree Zhan and Jihan Wu, seems to have reached a new level, as Zhan would apparently be diverting his financial flows to entities totally controlled by him.

This is part of a public service announcement that appears on Bitmain’s Weibo and WeChat pages, notifying customers that Bitmain’s payment credentials and email have changed. These appear to point to accounts controlled by Zhan.

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However, according to the BlockBeats report, Wu issued a statement claiming that such actions are due to WeChat and Weibo accounts that are reporting false information.

According to the statement, the „abnormal activity“ in Bitmain’s accounts caused the sites to issue false statements in the company’s name since June 10. The announcement reiterated once again that legal procedures will be used to stop the dissemination of „fraudulent information“.

Wu seems to be losing

The long struggle has come close to a resolution in recent months. Zhan seems to have struck several blows against Wu’s authority, which began with Zhan’s attempt to steal the company’s official seal in May.

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Since then, in June, Zhan has used private guards to enter Bitmain’s office in Beijing and assume the role of legal representative. Wu retained control of outside entities, mainly Bitmain’s Hong Kong-based company.

Zhan’s reach was extended to Shenzhen, as he reportedly blocked shipments from ASIC miners to customers.

It remains unclear who currently controls Bitmain, and some make analogies to a „Schrödinger Bitmain“. It is likely that due to its legal structure, neither party can expel the other conclusively.

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As Cointelegraph reported on June 24, Zhan offered to buy Wu’s share and that of other investors for $4 billion, which could mark the beginning of negotiations for a peace treaty between the co-founders.

Meanwhile, the company appears to be still operating as new contracts are signed.

18. Juli 2020