Ebang, the China-based communication and one of the largest bitcoin mining chip markers in China, as well as the producer of E9 miner, has been involved in a financial crime in the past few days. It may also have a bad effect on the firm’s Hong Kong IPO process.

Yindou, a Beijing-based P2P lending platform that has announced stopping operation on July 18 and currently suspected to an illegal fund-raising.  

It was reported that several investors of Yindou.com disclosed that they found suspicious huge amount of fund flows between the world’s third largest mining machine manufacturer Ebang and Yindou.

They also testify against Ebang for misappropriating more than 500 million yuan fund from Yindou in order to inflate its sales revenue in the financial report.

According to an anonymous regulator, the Beijing Public Security Bureau (BPSB) has already filed the Yindou case, but whether the fund flows between Yindou and Ebang will be included in the case investigation, it still depends on whether the BPSB will pursue that or not.

Recently, the investors of Yindou have submitted an application to the Hong Kong Stock Exchange (HKEX) to reject the listing of Ebang.

Several executives of Ebang Communication, the communication embranchment of Ebang, have also admitted that, Zhu Xiaolin, the accountant of Yindou.com has bought 1 million shares of Ebang Communication from the secondary market and as of press time, she still holds these shares.

According to an official announcement launched by BPSB, Zhu is the criminal suspect at large of the Yindou illegal fund-raising case.

Ebang is the third largest mining giant in the world, ranks only after Bitmain and Canaan Creative. The firm has submitted its IPO prospectus to HKEX on June 24, 2018. The listing program may be hindered to some extent if Ebang has participated in the Yindou financial crime.