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Ousted Bitmain co-founder suspends mining device shipment after seizing control of company factory

Ousted Bitmain co-founder Micree Zhan has taken over the company's factory in Shenzhen and demanded manufacturers to stop shipping miners to customers, according to reports.

According to Wushuo Blockchain, a local media outlet founded by a former Bitmain employee, Bitmain's supplier team in Shenzhen has joined Zhan's side of the battle as Zhan continues to fight for control over the company with Bitmain's other cofounder Jihan Wu. BlockBeats, another Chinese outlet, also reported the news.

Zhan has reportedly intercepted the mining equipment that Bitmain customers have already paid for and is selling it to miners close to him. Meanwhile, the report claims, Zhan is unable to access Bitmain's IT and finance departments in Beijing and is asking customers to send money before equipment can be shipped.

The developments represent the latest twist in a long-running power struggle between the co-founders of the bitcoin mining hardware giant.

In October 2019, Wu abruptly took over Zhan's position as Bitmain's CEO and legal representative. Zhan has been working to reclaim influence ever since. In April, a local justice bureau in Beijing sided with Zhan and reversed a previous decision that approved Bitmain's move to dismiss him. Read More