Bitmain Founder Loses His Board Seat Leading up to IPO

Jihan Wu via Chamber of Digital Commerce / YouTube

Bitmain¬†co-founder Jihan Wu has reportedly been ousted from his seat on the company’s board of directors, stripping him of his influence over corporate decisions at the mining firm.

According to a recent report by Chinese media outlet¬†Sanyan Blockchain, Wu’s demotion is part of a larger board restructuring that comes three months after Bitmain priced its upcoming IPO at $18 billion.

“After changing to a supervisor, there is no voting right, so the power is smaller and cannot participate in the business decision-making of the enterprise. It can only exist as a supervision,” explained Tian Yangang, a Bitmain lawyer familiar with the matter.

This board reshuffling adds to a growing list of question marks surrounding to the company’s upcoming IPO. A report by the Financial Times this week revealed that Bitmain had significantly smaller profits in its initial public offering prospectus than in documents related to earlier funding rounds.

Similarly, as we reported back in August, neither SoftBank Group Corp. or Tencent Holdings could be confirmed as investors in the crypto mining giant despite previous claims.

Update: Bitmain told CCN in an email that there have been no board departures and Jihan Wu will continue to lead the company as co-chair.

More: Lawyer: Wu Jihan has no right to participate in business operations after withdrawing from the director of Bitcoin

Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.

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