China’s Local Court Freezes Bitmain’s $514K Worth of Stake in Its Subsidiary

Bitmain’s 3.6 million yuan (around $514,000) worth of stake in its subsidiary Fujian Zhanhua Intelligent Technology Co. has been frozen by a local court in China’s Fujian province.

The freezing will be for three years—from December 16, 2019, to December 16, 2021, as per data from local business information and investigation platform Tianyancha.

It isn’t clear why the court has held onto Bitmain’s stake, but a few reports state it is an attack by fellow co-founder Micree Ketuan Zhan, who was unexpectedly expelled by Bitmain’s another co-founder Jihan Wu in October.

Bitmain now has over $1 million worth of assets that are frozen. On Monday, a Chinese district court authorized a request to seize about $675,800 worth of Bitmain’s assets. The request was put together by electronic gadget seller Dongguan Yongjiang Electronics Co, which is presently locked in a sales contract dispute with Bitmain’s subsidiary Shenzhen Century Cloud Core Technology Co. The seized properties are under dispute and will be given to Yongjiang should the court rule in its favor.