Bitmain 'strongly condemns' co-founder Micree Zhan following lawsuit ruling

Bitcoin miner making giant Bitmain has today published an official statement saying that it "strongly condemns" co-founder Micree Zhan after a court sided with Zhan in an ongoing lawsuit.

"Zhan ignored the common interests of the company and all employees and filed a lawsuit maliciously during the period of the [coronavirus] pandemic, which interfered with the company's normal operations and [affected growth]," said Bitmain in its official Weibo post on Monday.

Zhan was ousted last October, and since then, he has filed two lawsuits to regain control of Bitmain.

Last month, the Changle District court in China’s Fujian province sided with Zhan to freeze 36% of Fujian Zhanhua’s shares owned by Bitmain. Fujian Zhanhua is a 100% subsidiary of Beijing Bitmain, whose parent company is BitMain Technologies Holding, of which Zhan is the largest shareholder, with a 36% stake.

Bitmain today said the court's ruling is "only a procedural jurisdiction ruling," adding that the case is ongoing and the final judgment is yet to be announced.

"Zhan said he holds 36% of the equity of Fujian Zhanhua, with no facts and legal basis," said Bitmain, adding that "the result of this case will not have any impact on Bitmain’s normal production and operation, nor will it affect Bitmain's absolute controlling interest in Fujian Zhanhua."


Update: This report and its headline have been amended for clarity.

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Yogita is a senior reporter at The Block and covers all things crypto. Before joining The Block, Yogita worked for CoinDesk and The Economic Times. She can be reached at [email protected]co. Follow her on Twitter @Yogita_Khatri5.