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Bitmain Drama as Co-founder letter alleges coup

Bitmain Drama as Co-founder letter alleges coup
By We Play Coins
Added on Nov 07, 2019

Bitmain Drama as Co-founder letter alleges coup according to a report by Cointelegraph. In a letter written by Micree Zhan addressed to the employees of bitmain, the co-founder claimed that he was kicked out of the company.

Micree Ketuan Zhan is the co-founder of Bitmain along with Jihan Wu. Zhan owns 60% of the total shares of Bitmain.

Recently Bitmain applied for an IPO after Zhan had reportedly “exited” the company governance. Wu claimed that Zhan walked out to help the company in a difficult time. Zhan, however, claims that Bitmain pushed him out without his consent. In the letter addressed to the company employees Zhan promises to “take any legal action” to get back control and “help save the company”.

The controversy surrounding Bitmain is connected with Bitcoin Cash (BCH). Bitmain has a major share of the mining pool that contributes to the Bitcoin Cash network. Wu has warned employees that they may be terminated if they have any communication with Zhan.

Bitmain Drama as Co-founder letter alleges coup in a letter is not a good way to go public. However, the news has not affected the company valuation.

The Short Points

Altcoin Bitcoin Cash (BCH) has surged 10% in the past 24 hours after it emerged mining giant and major supporter Bitmain had fired a senior executive.

In a translation of an email from Oct. 29 quoted by crypto news outlet CoinDesk, Bitmain co-founder Jihan Wu said that fellow co-founder Micree Ketuan Zhan had left the company.

“Bitmain’s co-founder, chairman, legal representative and executive director Jihan Wu has decided to dismiss all roles of Ketuan Zhan, effective immediately,” it reportedly read.

Wu further offered a warning to those who continued to interact with Zhan:

“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 note.”

Zhan is Bitmain’s biggest shareholder, with a reported 60% stake.

Zhan’s sudden departure marks the latest chapter in a series of unexpected occurrences at Bitmain. As Cointelegraph reported, Wu himself suddenly abandoned his post as CEO of the company in November 2018, instead taking on a non-executive role on its board.

Reacting to the email, private investor Dovey Wan described Wu’s tone as “intense” in the original Chinese version.

“WOW THIS IS MORE DRAMATIC THAN I THOUGHT,” she summarized on Twitter. According to Wan, Wu told employees that he intended to take control in order to improve Bitmain’s waning share of the Bitcoin mining pie.

“Jihan, literally said to his employees ‘I have to come back to save this ship (from sinking),’” she added.

Bitcoin’s continued strength in 2019 has nonetheless been a boon for Bitmain and other miners. Last week, executives announced they intended to create the world’s largest mining facility in Texas.

Bitcoin Cash, on the other hand, has failed to produce similar successes. Bitmain is an open supporter of Bitcoin Cash, with Wu notoriously vocal about his own belief in the coin.