Bitmain Facing Pressure to Drop U.S. IPO Plans Due to Link with BitClub Ponzi Scheme

It looks like Bitmain is in deep trouble for selling mining gear to the infamous BitClub Network, a Ponzi scheme that ripped off people for more than $722 million. Reports are coming in that they might need to backtrack on their U.S. IPO because of the ongoing investigation. Things aren’t looking great for the hardware maker as this investigation seems to be heating up, but we’re still waiting on the specifics to come out. Honestly, this is the price they’re paying for being linked to a ponzi scam. Helping out a fraudulent operation, even just a bit, is totally not cool. Even if they didn’t realize it was a scam at first, they should’ve done their homework instead of getting easily swayed by BitClub’s shady schemes. I’ve seen a bunch of my Facebook friends pushing BitClub before and trying to get me to join their ranks. But there’s no way they could convince me because I’ve known from the start that BitClub was a ponzi scam.

Let's see what their actual association with it is. There's no details in there. I wonder why it would be anything beyond selling them hardware in which case there's nothing to answer for. I'm impressed Bitclub actually bought any gear at all.

It's not that I have much sympathy for Bitmain, but getting into legal troubles for merely selling mining equipment to the wrong company does seem a bit excessive. Maybe it's just a way of "playing it safe" and covering all their legal bases?

They didn't just sell There is an interesting topic about bitclub going down here People from bitmain were meeting with the operators of bitclub, and another familiar face also  , and main knew all the time how much gear they've sold to them and how their claims of buying millions in equipment were fake but never denied them, they've kept quiet. And of course, there is also the possibility of bitmain actually helping them with a bit of hash rate to fake the stats, wouldn't be surprising

Thanks for the link, Bitmain just gets more likeable by the minute. In that case I'd also keep my head down, jesus christ.

It's either this scandal or Micree Zhan who will finally put a nail in their coffin. They won't really last in the US  market with scandals like this one especially at this very early stage and it would really be a good idea to back out their plans of a US IPO since their stock prices would just be affected at their first trading day. If they still plan to go thriugh with their IPO they need to wait this out first until they are out of the headlines so that their stock performance won't be affected.

I am sure there must be more than just a seller-buyer association otherwise it would be illogical to further investigate the whole matter. I have known BitClub for a long time because I was also recruited into it but since I really doubted the whole system they were using I just ignore them. Well, I have to be honest that passive income programs can indeed be truly attracted to many, especially for a guy like me who is technically-challenged. Let's hope that something good can be coming out of this mess and any accountability can be established so that this can be another big lesson to all never to be associated with any possibly scam programs. There would be more coming scam programs like BitClub and they can be creatively packaged in many ways and appearance attracting many innocent victims along the way. We really have to be careful...

As much as Bitmain has a bad reputation around the crypto circles - I doubt that simply selling hardware to someone is a demonstration of actual 'association'. Could they have done their due diligence better by sniffing out the scam through the obviously inflated returns that are being promised? Absolutely. But does selling hardware to them without endorsing the scheme necessarily make them a co-conspirator? It's doubtful to me and legally I wouldn't think that there is any grounds to prosecute them on. This news will impact bitmain's PR more than anything, and of course their IPO. But they're likely not going to face legal repercussions for Bitclub's actions since they're two different entities.