The case was filed in the Changle District court in China’s Fujian province against Fujian Zhanhua Intelligence Technologies, a fully-owned subsidiary of Bitmain, and Beijing Bitmain Technologies as a related third-party.
Legal battles piling up
This most recent lawsuit comes as an addition to an ongoing lawsuit that Zhan filed in December 2019 in the Cayman Islands, where Bitmain’s holding entity is registered in a first attempt to overturn a decision by shareholders to significantly weaken Zhan’s voting power.
Zhan’s legal counsel is arguing that the decision was reportedly made at a shareholder meeting that Zhan was not made aware of beforehand. As such, a hearing for the case may be put on the calendar after mid-April.
While the allegations Zhan is making in the newest lawsuit have not been made public, a notice issued by the court says that the case is being held in relation to “shareholder qualification confirmation dispute,” which could indicate that the Chinese case is similar to the ongoing case in the Cayman Islands.
The notice also says that a hearing of the case was originally scheduled for February 11th, although the case was likely postponed due to the continued outbreak of the coronavirus in China.
A struggle to regain power
The filing follows the filing of an asset-protection petition by Zhan in the same court last December, for which the court announced it was siding with Zhan last week. As a result of the court’s decision, 36 percent of Fujian Zhanhua’s Bitmain-owned ¥10 million (CNY) incorporated shares have been frozen.
That 26 percent is worth ¥3.6 million, or roughly $500,000--a rather pithy amount for Bitmain which made $2.8 billion in profits in 2018. Still, the ruling has symbolic significance in favor of Zhan, if nothing else: Zhan remains the largest shareholder in Fujian Zhanhua, meaning that the ruling should prevent his power over the company from being diluted.
Zhan also remains as the subsidiary’s legal representative, which is significant because of its integral role in Bitmain’s greater operations and seemingly lucrative operations.
In 2018, Bitmain’s IPO filing in Hong Kong-listed Fujian Zhanhua as one of the “four principal subordinate entities that had made material contribution to the financial results of Bitmain’s holding group, alongside Beijing Bitmain, Bitmain Hong Kong and a Shenzhen manufacturing subsidiary,” according to CoinDesk.
In the same filing, Fujian Zhanhua was also pointed out as Bitmain’s main facilitator of sales for cryptocurrency mining hardware in China. Two of Bitmain’s major sales channels, the AntMiner pre- and post-sales WeChat accounts, were also operated by Fujian Zhanhua, though they have been moved under the control of another BitMain subsidiary since December.
The case was filed in the Changle District court in China’s Fujian province against Fujian Zhanhua Intelligence Technologies, a fully-owned subsidiary of Bitmain, and Beijing Bitmain Technologies as a related third-party.
Legal battles piling up
This most recent lawsuit comes as an addition to an ongoing lawsuit that Zhan filed in December 2019 in the Cayman Islands, where Bitmain’s holding entity is registered in a first attempt to overturn a decision by shareholders to significantly weaken Zhan’s voting power.
Zhan’s legal counsel is arguing that the decision was reportedly made at a shareholder meeting that Zhan was not made aware of beforehand. As such, a hearing for the case may be put on the calendar after mid-April.
While the allegations Zhan is making in the newest lawsuit have not been made public, a notice issued by the court says that the case is being held in relation to “shareholder qualification confirmation dispute,” which could indicate that the Chinese case is similar to the ongoing case in the Cayman Islands.
The notice also says that a hearing of the case was originally scheduled for February 11th, although the case was likely postponed due to the continued outbreak of the coronavirus in China.
A struggle to regain power
The filing follows the filing of an asset-protection petition by Zhan in the same court last December, for which the court announced it was siding with Zhan last week. As a result of the court’s decision, 36 percent of Fujian Zhanhua’s Bitmain-owned ¥10 million (CNY) incorporated shares have been frozen.
That 26 percent is worth ¥3.6 million, or roughly $500,000--a rather pithy amount for Bitmain which made $2.8 billion in profits in 2018. Still, the ruling has symbolic significance in favor of Zhan, if nothing else: Zhan remains the largest shareholder in Fujian Zhanhua, meaning that the ruling should prevent his power over the company from being diluted.
Zhan also remains as the subsidiary’s legal representative, which is significant because of its integral role in Bitmain’s greater operations and seemingly lucrative operations.
In 2018, Bitmain’s IPO filing in Hong Kong-listed Fujian Zhanhua as one of the “four principal subordinate entities that had made material contribution to the financial results of Bitmain’s holding group, alongside Beijing Bitmain, Bitmain Hong Kong and a Shenzhen manufacturing subsidiary,” according to CoinDesk.
In the same filing, Fujian Zhanhua was also pointed out as Bitmain’s main facilitator of sales for cryptocurrency mining hardware in China. Two of Bitmain’s major sales channels, the AntMiner pre- and post-sales WeChat accounts, were also operated by Fujian Zhanhua, though they have been moved under the control of another BitMain subsidiary since December.
Rachel is a self-taught crypto geek and a passionate writer. She believes in the power that the written word has to educate, connect and empower individuals to make positive and powerful financial choices. She is the Podcast Host and a Cryptocurrency Editor at Finance Magnates.
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion explaining the impact of news on trading.
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion explaining the impact of news on trading.
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion explaining the impact of news on trading.
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion explaining the impact of news on trading.
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion explaining the impact of news on trading.
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion explaining the impact of news on trading.
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets.
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets.
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets.
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets.
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets.
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets.
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets while participating in a panel discussion on "How to Trade the News."
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets while participating in a panel discussion on "How to Trade the News."
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets while participating in a panel discussion on "How to Trade the News."
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets while participating in a panel discussion on "How to Trade the News."
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets while participating in a panel discussion on "How to Trade the News."
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets while participating in a panel discussion on "How to Trade the News."
FMLS:24 exhibition venue is crowded on the second day.
FMLS:24 exhibition venue is crowded on the second day.
FMLS:24 exhibition venue is crowded on the second day.
FMLS:24 exhibition venue is crowded on the second day.
FMLS:24 exhibition venue is crowded on the second day.
FMLS:24 exhibition venue is crowded on the second day.
Panel Discussion on "Regulation, Trust, and the Future of Trading in Africa"
Panel Discussion on "Regulation, Trust, and the Future of Trading in Africa"
Panel Discussion on "Regulation, Trust, and the Future of Trading in Africa"
Panel Discussion on "Regulation, Trust, and the Future of Trading in Africa"
Panel Discussion on "Regulation, Trust, and the Future of Trading in Africa"
Panel Discussion on "Regulation, Trust, and the Future of Trading in Africa"
Experts discuss the topic "Regulation, Trust, and the Future of Trading in Africa" at FMLS:24
Experts discuss the topic "Regulation, Trust, and the Future of Trading in Africa" at FMLS:24
Experts discuss the topic "Regulation, Trust, and the Future of Trading in Africa" at FMLS:24
Experts discuss the topic "Regulation, Trust, and the Future of Trading in Africa" at FMLS:24
Experts discuss the topic "Regulation, Trust, and the Future of Trading in Africa" at FMLS:24
Experts discuss the topic "Regulation, Trust, and the Future of Trading in Africa" at FMLS:24