Founder of Bitmain Rival Apprehended as the Crypto-Miners War Heats Up

(Photo : Photo by Bitcoin Clipart on Flickr)

The designer of a Chinese Chip who helped the firm, Bitmain Technologies Ltd., become the largest Bitcoin mining rigs maker of the world before he started his own business has been arrested. This has been confirmed by three people who are familiar with the issue. A Tech mastermind until the middle of 2016 with Bitmain, Yang Zuoxing, was held by the Shenzhen police end of October because of a legal dispute with his previous employer.

Prosecutors in the Nanshan district of the city said in a statement released last week, as reported on Bloomberg, “that Yang was arrested on suspicion of embezzlement,” and that “legal procedures were ongoing.” Relatively, the same statement excluded the 2nd of 3 Chinese characters that make up the full name of Yang, possibly to protect his identity. It did not mention Bitmain or MicroBT, the crypto-mining firm this tech genius founded 1 month after he quit Bitmain.

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Crypto-Miners War

MicroBT has turned into a serious competitor, taking share away from Bitmain using its Whatsminder equipment. Additionally, while crypto-miners produce machines with similar prices and specs, they contend against each other to win tight chi supplies coming from foundries run by Samsung Electronics Co. and Semiconductor Manufacturing Co. Yang’s arrest takes place as a competition between Bitmain and its competitors strengthens.

Bitmain and MicroBT representatives declined to make any comment on the issue. The Nanshan prosecutors’ office did not respond instantly, as well, when requested to comment. Incidentally, Bitmain has fought several legal battles already against its top ex-staffers. Last year, this Beijing-based firm lost a court verdict against MicroBT over accusations that Yang’s startup violated its patent rights. Earlier on, Bitman filed a case against 3 of its ex-employees who are said to have “started rival miming pool Poolin”…

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