The controversies surrounding Bitmain continue as recent reports have it that Jihan Wu has allegedly been involved in illegal activities, putting his wills and interests above the law.
New Reports Spark More Controversy
Toward the end of last year, Jihan Wu, who had previously stepped down as the co-CEO of Bitmain, assumed control once again. Since then, controversy seems to be spiraling out of control.
Just a couple of weeks ago, CryptoPotato reported that the exiled co-founder Micree Ketuan Zhan used private guars to storm in the company’s offices in Beijing.
The conflict between the two continues as today, reports have it that Zhan has offered to buy shares from Jihan Wu with a $4 billion evaluation.
More importantly, however, he also accused Jihan Wu in a series of illegal activities, including embezzlement of company property, failing to comply with the law, and so forth. The translation of the announcement comes from Hashkey Hub’s head of marketing.
Commenting on the matter was also Samson Mow, CSO at Blockstream, who said that:
“Jihan literally tried to steal a company. He pulled all sorts of shady tricks like he did when trying to fork Bitcoin. It was only a matter of time until it caught up with him.”
Jihan Wu and Bitcoin Cash: A Reason to Worry?
Jihan Wu is a well-known proponent of Bitcoin Cash. Back in 2018, he said that he has “huge confidence” in the future of the cryptocurrency.
More interestingly, however, under his supervision, Bitmain sold most of their Bitcoin (BTC) for BCH.
According to the Bitmain pre-IPO investor deck, they sold most of their #Bitcoin for #Bcash. At $900/BCH, they’ve bled half a billion in the last 3 months. If Bitcoin Core devs didn’t disclose the Bcash vulnerability, it could’ve wiped a billion dollars off their balance sheets. pic.twitter.com/9BMywdvvby
— Samson Mow (@Excellion) August 11, 2018
Back at the time, Bitcoin Cash was worth around $900 but has since dropped in price dramatically, signaling that the company may have endured heavier losses.
Last year, when Jihan Wu assumed the control of the company after stepping down, the price shot up 10% following the announcement. It’s worth being more careful going forward, now that serious accusations have been brought up against him.