Bitmain co-founder in legal war against shareholders of the company

Reportedly Bitmain co-founder in legal war against the shareholders of his company controversy is the latest buzz in the cryptocurrency sphere.

Micree Zhan Khetuan has filed court proceedings against company shareholders to restore his voting control, Bloomberg reported.

Bitmain co-founder in legal war against shareholders

Micree Zhan Khetuan owned four million Class B shares, which translated to ten votes per share. However, the shareholders decided to reduce Zhan’s control of the firm by reducing each Class B share’s value to one vote instead of ten. As such, Zhan asked Cayman Islands Court to discredit this decision and restore his power.

As per the reports, Zhan owned around four million Class B shares while Wu Jihan, the only other holder of the special stocks, only owns half as much.

The issue arose in October 2019 when Bitmain co-founder Jihan Wu decided to relieve Zhan Khetuan of his duties. Wu announced in an email that Zhan has left the company and that he has been dismissed of all roles.

Since then, Zhan has declared that he was removed from his post without his consent, and he would fight for Bitmain “till the end with legal weapons.”

Zhan stated that he was betrayed by his trusted partners and stabbed in the back. He added that for those who want “war,” he would give them one.

On the other hand, Wu has warned Bitmain employees against interacting with Zhan. Wu has advised employees from taking directions or participating in meetings organized by Zhan. He has explicitly stated that the company may choose to terminate employment contracts of employees that interact with Zhan.

Bitmain intends to reduce the workforce by nearly 50 percent as part of its “personnel optimization plan.” It is believed that this is due to the upcoming Bitcoin halving that would reduce mining rewards by half. Since Bitmain is a crypto mining firm, it cannot support its employees with half block rewards and needs to make adjustments.

Featured image by Pixabay.