One of the most vocal critics of the mining giant Bitmain Twitter user BTCKING555 reported that the number of investors is preparing a class action lawsuit against the company in the jurisdiction of Hong Kong with the aim to recover their investments after the expiration of the application for the IPO.

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 a class action in the works in Hong Kong.

— BTCKING555 (@btcking555) March 26, 2019.

He also claims that last summer Bitmain was able to raise $700 million, and that’s saved the company from bankruptcy. However, investors expect that with the IPO the value of their shares will increase significantly, which is still not happened.

2/ 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

— BTCKING555 (@btcking555) March 26, 2019.

At the moment, according to the chief strategic Director Blockstream Samson MOU, Bitmain mired in debt to contractors and suppliers, and sells the device Antminer S15 at a loss to cover at least part of the costs. Moreover, the new 7-nanometer chip supposedly not viable.

CSO Blockstream: mining company Bitmain Antminer S15 sells at a loss to pay off debt #ASIC #Antminer

— ForkLog (@ForkLog) 10 Mar 2019

We will remind, Jihan Wu resigned as CEO, but left behind a seat in the Board of Directors. The company promises to re-enroll for an IPO in the future.

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