Cryptocurrency mining giant, Bitmain, is going to be in some serious trouble after news reports emerged that the application for the company’s ambitious Initial Public Offering (IPO) had lapsed due to inactivity for the past six months.
For the uninitiated, on Tuesday, Crypto-News India had reported that the Initial Public Offering (IPO) application for cryptocurrency mining giant, Bitmain, with the Hong Kong Stock Exchange has lapsed.
We had reported when Bitmain had first filed its application for the IPO. At the time, the company had not yet disclosed the valuation it’s targeting after this IPO, but it was almost certain that the success of company’s IPO will be a reflection of interest in cryptocurrencies among retail as well as institutional investors of Hong Kong.
Now, one of the most vocal critics of Bitmain is now stating that there are plenty of angry investors, who may take some steps against the company. A Twitter thread by BTCKING555 whose Twitter bio reads, ‘Bitmainipo is a fraud’ said, “There are now tons of pissed of Asian investors that were duped by Jihan to invest during summer at $12 – $14 bn with a promise of IPO at minimum $18 bn. Now many understand this is mirage and Jihan deceived them on numbers and outlook. His reputation is shit!”
3/ already in august I warned many investors and prevented them from investing. Those that did not listen, good luck recovering your moneys. I hear there is class action in works in Hong Kong.
— BTCKING555 (@btcking555) March 26, 2019
The person added, “Noone will go nowhere near Bitmain for funding and expect litigation for investors try to recover their moneys. If not for the summer $700 mln fund-raise, Bitmain would be bankrupt now. Jihan and CFO lied on numbers and investors (Softbank, Tencent) to lock in capital.”
The person ended the thread by saying, “Already in august I warned many investors and prevented them from investing. Those that did not listen, good luck recovering your moneys. I hear there is class action in works in Hong Kong.”
While there has been no official news on whether any of this is true, it might be a headache for Bitmain, bigger than their lapsed IPO status.
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