Co-Founder Of Bitmain Commences Legal Suit To Retake control of Company

Co-Founder Of Bitmain Commences Legal Suit To Retake control of Company

cryptocurrency
January 4, 2020 by cryptogavel
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Cryptocurrency mining giant’ Bitmain‘ Co-founder, Micree Zhan Ketuan, has initiated litigation process against the company shareholders in a bid to return his voting control of the firm. According to a report by BNN Bloomberg on Jan. 3, Zhan prayed a Cayman Islands court to discredit Bitmain’s shareholders’ decision to convert the mining company’s Class B
Co-Founder Of Bitmain Commences Legal Suit To Retake control of Company

Cryptocurrency mining giant’ Bitmain‘ Co-founder, Micree Zhan Ketuan, has initiated litigation process against the company shareholders in a bid to return his voting control of the firm.

According to a report by BNN Bloomberg on Jan. 3, Zhan prayed a Cayman Islands court to discredit Bitmain’s shareholders’ decision to convert the mining company’s Class B shares to one vote per share, while previously each Class B share had come with ten votes and by so doing, the shareholders greatly reduced Zhan’s influence over the company.

Going by a 2018 initial public offering prospectus, Zhan  assertedly  owned approximately 4 million Class B shares — almost twice as much as Wu, who is the only other holder of the special stock.

Zhan’s removal without consent and procedure
The conflict between Zhan and Bitmain’s shareholders erupted in October 2019, when the company’s co-founder, Jihan Wu, disclosed in an email that Zhan had left the company. Accordingly the email read: “Bitmain’s co-founder, chairman, legal representative and executive director Jihan Wu has decided to dismiss all roles of Ketuan Zhan, with immediate effect.”

Zhan in reaction, claimed that he had been removed as a legal representative of the company without his consent and due process. Zhan thus wrote in response:

“I didn’t realize until then that those scenes in TV shows, where you get stabbed on your back by those partners you trusted and ‘brothers’ you fought together with, can really happen in real life. […] Bitmain is our child. I will fight for her till the end with legal weapons. I won’t allow those who want to plot against Bitmain to succeed. If someone wants a war, we will give them one.”

Furthermore, Wu warned Bitmain employees to desist from interacting with Zhan, saying:

“Any Bitmain staff shall no longer take any direction from Zhan, or participate in any meeting organized by Zhan. Bitmain may, based on the situation, consider terminating employment contracts of those who violate this order.”

Zhan feels disappointed and betrayed, seeing his trusted partners stab him in the back.

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