Connect with us


Media: on the eve of the IPO, potential investors of the mining company Bitmain were misinformed



A number of potential investors of the largest manufacturer of mining equipment, Bitmain, was misled by the news about the participation of DST Global and GIC Private Ltd. in the financing round of Series B along with venture capital firm Sequoia Capital. If Bitmain spread false information intentionally, the company's top management faces criminal liability and fabulous fines, CoinDesk reports.

In June, it was reported that the Chinese division of Sequoia Capital led a round of financing for Series B, under which Bitmain raised $ 400 million, after which the company's investment valuation allegedly rose to $ 12 billion. Then local media reported that Group venture unit , DST Global, and the Singapore GIC also took part.

A source who provided the Chinese media with a copy of the relevant documentation stated that he had received them from the hands of a person who was well aware of the details of the transaction, but did not provide any evidence of authenticity.

It soon turned out that neither DST Global nor GIC had ever invested in Bitmain. In addition, the news, which originated from the well-known WeChat-chat IPO Zao ZhiDao, that the company managed to raise $ 1 billion from the giants Tencent Holdings and SoftBank Group in the C Series financing round, also turned out to be fake.

The source CoinDesk claims that one of the investors, Bitmain, made a positive decision regarding the financing of the company on the basis of false data and is considering the possibility of a lawsuit against the mining giant. At the same time, a representative of a Hong Kong venture capital firm that invested in Bitmain, stressed that during the negotiations, no one mentioned the participation of DST Global or GIC.

If, in the end, it turns out that Bitmain's top management was involved in the dissemination of fake information, then it could lead to imprisonment of up to seven years, a fine of 1 million Hong Kong dollars and partial / full damages to investors.

Earlier, Bitmain officially submitted an application for an IPO in Hong Kong.

Download the BlockchainJournal app for Android smartphones! Subscribe to the BlockchainJournal news on Facebook !

<< aside id = "unisender_subscribe_form-10" class = "widget unisender_form">