Bitmain threatens to slap ousted Micree Zhan with legal action

ASIC hardware manufacturer Bitmain has published fresh statements on its co-founder and former executive Micree Zhan, confirming his removal from the board by shareholder’s vote in October.

In the latest twist in the ongoing power struggle for Bitmain, the firm said the former chairman and legal representative was removed from post on October 28, 2019, after shareholders approved a decision of the executive director.

In two separate statements, Bitmain said Zhan has no authority to act as a legal representative of Bitmain, and may not issue instructions to employees of the company. Bitmain also confirmed it was pursuing legal action against Zhan after he previously purported to act on behalf of the company.

The comments from Bitmain echo similar statements issued on the day Zhan was removed from post in October, with Jihan Wu at the time threatening employees with dismissal for following instructions from Zhan.

The developments are the latest in a lengthy power struggle for Bitmain, now running into its seventh month. At one stage, Zhan was reported to own twice as much stock as Wu, though his shares have since been reclassified downwards to reduce his control over the firm.

This has led to legal action from Zhan against Bitmain, in an apparent attempt to re-establish his authority within the company. Media reports in May suggest Zhan even ended up in a physical fight with the firm’s current legal representative.

The statements demonstrate the ongoing struggle for control at the head of the company. According to some media reports, matters may be complicated by staff loyalties to Zhan, which are reported to still run high.

The development comes during a difficult period for Bitmain, hit by falling demand and a raft of technical issues with their S17 model miners.