Yang Zuoxing, formerly a top chip designer for mining hardware giant Bitmain, has allegedly been arrested on suspicion of embezzlement.

A December. 16 Bloomberg report cites three unnamed sources and a police statement released past prosecutors in Beijing's Nanshan district on Dec. 12, as evidence for the merits.

The authorities' statement reportedly omitted reference to Yang's total Chinese name, ostensibly to protect his anonymity.

Industry rivalries

Yang Zuoxing had worked equally a processor design director at Bitmain until 2022, where he helped develop the manufacturer'due south flagship Antminer S7 and S9 models. He left the firm in June of that yr, subsequently co-founders Jihan Wu and Micree Zhan allegedly refused his request for a stake in the business.

Yang went on to constitute MicroBT, whose Whatsminer 20 serial of mining rigs accept become the industry'southward all-time-seller models so far this year.

Equally the rivalry between MicroBT and Yang'due south quondam employer has intensified, Bitmain had previously filed an unsuccessful lawsuit against MicroBT over the latter's alleged infringement of a patent.

This fall, Cointelegraph reported that Yang had been detained by law in Shenzhen to assistance in an investigation, the impetus backside which remains unclear.

Aside from omitting reference to Yang's full name, the Nanshan government' argument on December. 12 reportedly did not explicitly mention either Bitmain or MicroBT. Representatives from both firms have reportedly declined to officially comment on Yang'southward arrest.

Bloomberg'southward anonymous sources have said his absence has compromised MicroBT's ability to brand cardinal decisions about matters such equally pricing.

Executive infighting

In the latest of a series of tumultuous chapters at Bitmain'south captain, Wu Jihan apparently ousted swain co-founder Micree Zhan from the house this Oct. The latter notably owns a reported 60% stake in the company.

Ane year previously, Wu had himself suddenly abandoned his old post every bit CEO of Bitmain, moving into a non-executive role on the company's lath.