The long-running legal battle between the co-founders of Bitmain from China appears to have seen the light of day at the end of the tunnel after both parties agreed to reach an agreement.
Bitmain co-founders’ litigation has reportedly ended with $ 600 million in compensation for Jihan Wu
According to Chinese media, Jihan Wu and Micree Zhan, citing local crypto journalist Colin Wu, have agreed to settle $ 600 million in compensation in favor of Jihan Wu while Zhan is in control of the mining operations. Hardware manufacturer is retained.
As part of the settlement, however, Zhan will own the Antpool mining pool and Bitmain mining farms in China, while Wu will take control of Bitmain’s Btc.com mining pool and overseas mining centers.
The report details that Sequoia Capital is acting as the middle regulator for the transaction, which should be ratified once shareholders discuss it. However, conditions can be changed at any time without a fixed schedule, even without the need for a meeting.
On the flip side, Zhan is now responsible for the artificial intelligence department and all mining hardware operations under the business.
However, this means that Zhan should mortgage his shares temporarily to raise enough capital to buy Wu’s stake in Bitmain.
Chinese media also report that as part of the deal, Zhan agreed to complete a qualifying IPO in the US before the end of 2022, the minimum valuation of which is expected to be $ 5.5 billion.
Litigation resulted in delays in product shipping
The crypto mining hardware maker giant has noticed some issues with the delivery of its products over the year due to the dispute between the co-founders.
As reported by news.Bitcoin.com in August 2020, Bitmain delayed the delivery of its Antminer Bitcoin mining machines by three months. At the time, Bitmain said the delay was due to “outside interference with the company’s management”.
Wu and Zhan have fought a fierce battle for Bitmain’s control. The two co-founders led the company together for many years, but Zhan was reportedly fired from Wu’s company in October 2019 due to controversial circumstances.
In June 2020, a court in China ruled in Zhan’s favor and allowed him to return to power. Zhan, who holds a 37% stake in the company, took control of the Shenzhen-based company from Bitmain.
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