Bitmain is the ultimate crypto comedy club, and its actions over the past few years have kept every crypto news desk rather busy. In a breaking Twitter revelation from a reliable Bitmain source, Bitmain is planning to cancel its initial public offering (IPO) in America after the Department of Justice (DoJ) is investigating it for its role in the BitClub Ponzi scam. If the Twitter leak turns out to be correct, it would be a huge setback for Bitmain as it tried to regain its control over the crypto mining industry.
The Secret IPO That Never Was
After its disastrous fall from glory back in 2018, it comes as no surprise that Bitmain wants to keep things on the down low, but the trouble with secrets is that they always get out. The last time Bitmain spoke publicly about an IPO, it was planning to launch one on the Hong Kong Stock Exchange (HKSE). However, that blew up as the HKSE changed its stance towards crypto related businesses, then Bitmain appeared to implode. This time around. Bitmain opted to apply for a US IPO in private, waiting to get feedback before announcing it to the world. That being said, it looks as if once again some rather poor choices have forced this crypto mining giant once more to turn back to private investors.
Leaked Information Coming Through
Once more, Twitter user @BTCKing555 has announced a leak that Bitmain is withdrawing its IPO. Allegedly, Bitmain sold a huge amount of mining equipment to BitClub, a Ponzi scheme that stole millions of dollars from investors. BTCKing went on to hint that the numbers of the deal were also fudged to look better in favor of Bitmain’s revenue, could these have been the sales that made Bitmain look rather profitable in 2019?
For now, the reports are still unconfirmed, but the DoJ is looking into the BitClub Ponzi scheme and BTCKing has been right with his information before. If this is in fact true, it could be the final nail in the coffin for Bitmain, causing it to never be able to regain control over the crypto mining industry.