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Chinese Bitcoin Miner Maker Ebang was Involved in Criminal Case

On December 9, Ebang, a Chinese bitcoin miner maker, received the notice of filing the case and now is under investigation of Beijing police Bureau.

Earlier, Ebang is planning an initial public offering (IPO) in the U.S., according to 8btc’s previous report. Falling into criminal disputes may influence Ebang’s listing course.

The plaintiff signed sales contracts with Ebang to purchase 90000 and 10000 cloud computing servers with a total contract amount of 504 million Chinese yuan.

The plaintiff claims that it only received 65000 products fromEbang’s Zhejiang branch, but no products from Ebang’s Yunnan branch. Ebang’s Zhejiang failed to fulfill the delivery obligation as agreed in the contract and sent the goods to an unrelated third party without receiving any delivery instructions.

The Hangzhou-based company which makes the Ebit miner ‘s IPO application lapsed on March 25, while Canaan allowed its application to expire in November 2018. Ebang first tried to take its shares public on the Hong Kong exchange on June 24, 2018, but updated its application the following December. IPO applications to list on the Hong Kong Exchange are only valid for six months. The Hangzhou-based company is the second-largest cryptocurrency mining equipment maker in the world after Bitmain and reportedly sought to sell its stock for $400 million.

In the first six months of 2018, the company’s revenue was 2.1 billion Chinese yuan and its profit reached 135 million U.S. dollars, but its revenue and gross profit in the third quarter of 2018 “declined substantially”.

The scale of Ebang is similar to that of Canaan, the first share of blockchain/miner, which is far smaller than that of Whatsminer and Bitmain. Earlier in June this year, Ebang said it would consider going public to the US market.

According to the prospectus of Ebang, two A-share listed companies that purchased miners worth nearly 700 million Chinese yuan from Ebang in the first half of 2018, which are exactly the plaintiffs in the case, accounting for about 34% of the total revenue of Ebang.

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