Bitmain may be Sued by its Investors for Financial Misrepresentation and Omission

Bitmain is still preparing for its initial public offering. As the world’s largest cryptocurrency mining semiconductor, Bitmain’s IPO causes much concerns from the crypto mining community. However, controversy has been swirling around the company over the past few weeks.

There were rumors going around about its alarming financial condition. Lately, the controversy went to a whole new level as posts appeared online of its investors threatening to sue Bitmain for misrepresenting financial information and material omission.

On September 17th, a user named BTCKING555 tweeted about the conflict between Bitmain and its investors over a financial issue. He has also provided an image of an agreement document given out during a meeting in Beijing. The image shows Jihan Wu and Ketuan Zhan (Micree) as the warrantors to the agreement and declares them liable for any misrepresentation. It states that the liability would spread across group companies including Bitmain Technology, Blocktrail, Hashnest, Tospring, just to name a few.

Obviously, the authenticity of this information is still worth to be concerned. So far, there are no other individuals or institutions reporting this information. In addition, after going through his tweets, it is not hard to find that BTCKING555 is definitively a “Bitmain bearish”, most of his tweets overreact towards Bitmain and Jihan Wu.

For instance, he also tweeted today that a top Hong Kong lawyer says Jihan and Micree have made a big mistake of giving personal guarantee to investors in the Shareholder Agreement. BTCKING555 emphasized that they misrepresented numbers during the investment round and will pay a “hefty price” for that.

However, if BTCKING555 does have an inside source, this news can be associated with the previous news of Bitmain’s ambiguous financial condition.

As of the press time, the story is not so clear. However, once Bitmain releases its Q2 financial report, everything will be clear.

*Edited based on an article from 8btc

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: