The crypto mining industry has grown immensely in a very short span of time. While it still continues to face regulatory hardships from most regulators, some governments continue to embrace it. The health of the Bitcoin network is mostly determined by the computational power behind it and that has been reaching new highs signalling the growing power and potential of the Industry.
Cryptocurrency mining is a heavy computational process which gets heavier with the increase in load on the network. In order to provide the required amount of processing power, special types of equipment are needed. These mining equipment are manufactured by certain companies, and these companies are the backbone of the mining industry.
Despite the growing demand for mining equipment from all over the globe, but it looks like 2019 is turning out to be a bad year for some of these manufacturers.
Bitmain, one of the largest manufacturers of mining equipment, has been struggling with declining market dominance alongside various internal problems related to upper management. Back in October, Bitmain CEO Jihan Wu ousted co-founder Micree Keutan Zhan, who was also the major shareholder of the company with a 60% stake in Bitmain.
Now latest reports state that Yang Zuoxing, CEO of MicroBT, has been arrested on suspicion of embezzlement. Yang is a Chinese chip designer who previously worked with Bitmain before starting MicroBT. The company has grown to be a big competition for Bitmain with its flagship Whatsminer 20 series.
Local media reports reveal that Yang has supposedly been taken away by the police to assist an investigation order over a possible IP dispute. The alleged embezzlement amount is 100,000 yuan, or about $15,000, the report said. Reports, however, don’t specify if the alleged embezzlement relates to Yang’s own company or his former employer Bitmain, the report said it followed Bitmain’s move of escalating its failed civil lawsuit against Yang to a criminal case by reporting to police in Beijing with charges against him for trade secrets infringement.
Apart from these, Simplecoin, a cryptocurrency mining platform, is shutting down due to regulatory constraints. A press release from the company states that the cease of operations is due to the European Union’s new Anti Money-Laundering (AML) laws that would force Simplecoin to draft new KYC and AML policies. These policies would contradict the company’s ideologies. Customers will have until December 20th to withdraw their remaining funds after which the entire platform will be shut down.
Amidst rising demand for cryptocurrencies and blockchain technology, mining has also seen a lot of popularity despite all the shortcomings. These reports haven’t had much impact on the market so far and mining equipment continues to be a very popular investment among crypto enthusiasts.