- Yang ZUoxing, Founder of MicroBT, arrested for alleged embezzlement.
- The arrest was carried out by Shenzhen Nanshan District Prosecutor on December 12.
Shenzhen-based bitcoin miner maker MicroBT is in the middle of a constitutional crisis as its founder and CEO. Yang Zuoxing got arrested for alleged embezzlement of over $15,000.
The arrest was carried out by Shenzhen Nanshan District Prosecutor on December 12, and it was brought into public attention by business publication Caixin last week.
This news was put up in the official website of Shenzhen district prosecutor last Thursday about the person behind the allegation of embezzlement authorizing the arrest of a suspect named Yang* Xing (name redacted). He further stated about the people who are directly or indirectly familiar with the case.
The report said that the person involved is indeed the founder and CEO of MicroBT, who is the manufacturer of the WhatsMiner bitcoin mining equipment owning over 40 percent of market cap. The alleged fraud amount is over $15,000.
Media reports showed that Yang had been arrested by the local police early this November to help them with the investigation on possible IP dispute, even though this was not the exact reason why he was taken under arrest by the officials.
Added to the fact that MicroBT has been taking over a significant market share whereas BitMain’s dominance has been waning over 2019.
The arrest is made right after the arrest of Jihan Wu, cofounder.
Prosecutor has still not commented on whether the embezzlement is related to Yang’s firm or his employer Bitmain. The report stated that Bitmain took the initiative to report against Yang to a criminal case for trade secrets infringement. Both MicroBT and Bitmain did not bother to make their stand on this issue.
Yang, according to records, was a former mining chip design director at Beijing—based bitmain who developed the S7 and S8 models in the past few years. Bitmain reaped a huge profit of over $2 million by selling those models in the last two years.
Yang left Bitmain following some negotiations about the firm’s equity and started his venture, MicroBT. It provoked Bitmain to charge Yang for a civil case in 2017, alleging him of trade infringement, granted for bitcoin mining equipment.
Last year, Yang’s team made a successful appeal to the intellectual property court in China to void Bitmain’s secured patent, and the civil case dismissed.