The protracted legal battle between co-founders of China-based Bitmain appears to have seen the light at the end of the tunnel after both sides agreed to come to an agreement.
Legal battle between Bitmain co-founders reportedly ended with $ 600 million fee for Jihan Wu
According to Chinese media, citing local crypto journalist Colin Wu, Jihan Wu and Micree Zhan reportedly agreement to settle $ 600 million in compensation in favor of Jihan Wu, while Zhan retains control of the mining hardware manufacturer’s business.
However, as part of the settlement, Zhan will own the Antpool mining pool and Bitmain’s mining companies in China, while Wu will take control of Btc.com’s mining pool and Bitmain’s overseas mining centers.
The report states that Sequoia Capital is acting as the middle regulator in the deal to be ratified once shareholders discuss it, but the terms can be changed at any time without a set timetable, even without the need for a meeting.
On the other hand, Zhan is now in charge of the artificial intelligence division and the entire mining hardware business as part of the deal.
However, it implies that Zhan will need to temporarily mortgage his stock to raise enough capital to buy Wu’s stake in Bitmain.
Chinese media outlets also report that as part of the deal, Zhan has agreed to complete a qualified initial public offering in the United States by the end of 2022, the minimum listing value of which is expected to be set at $ 5.5 billion .
Legal battle led to delays in the shipment of products
The crypto mining hardware maker giant has witnessed some issues in delivering its products due to the struggles between co-founders over the year.
Such as news.Bitcoin.com reported in August 2020, Bitmain delayed shipments of its Antminer bitcoin mining machines by three months. At the time, Bitmain said the delay was the result of “ outside interference in the company’s management. ”
Wu and Zhan are engaged in a bitter battle for Bitmain’s power. The two co-founders have led the company together for years, but Zhan is reported to have departed Wu’s company last October 2019 due to controversial circumstances.
In June 2020, a court in China ruled in favor of Zhan, allowing him to return to power. Zhan, who owns a 37% stake in the company, took control of Bitmain’s Shenzhen-based operations.
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