Beijing Police Investigates Chinese Mining Company
Main page News, China, Mining

The Beijing Police Bureau has started to investigate Chinese cryptocurrency mining firm Ebang, 8btc reports.

According to the news outlet, the plaintiff reportedly signed several contracts with the mining firm to buy 90,000-100,000 cloud servers valued at 504 million Chinese yuans (about $72M).

However, the plaintiff claims the firm only provided 65,000 units from Ebang's Zhejiang branch, while the Yunnan branch did not deliver the agreed devices.

The plaintiff says the company has violated the terms of the contract because it delivered the products to a third party without providing any delivery instructions.

This lawsuit could negatively affect the company's plans to go public in the United States.

The firm decided to hold an IPO in the US after its plans to debut on the Hong Kong Stock Exchange failed. Neither Bitmain nor Canaan Creative, other popular mining companies, has managed to hold an IPO in Hong Kong either. Ebang planned to attract around $400M.

Canaan is the only Chinese mining company that has successfully gone public on the NASDAQ. However, its shares have fallen by 47% since then.

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