Chinese Courts Freeze $680K Belonging to Bitmain Subsidiary

Michael LaVere
  • A Shenzhen district court has frozen $680K belonging to Bitmain subsidiary Century Cloud Core over a contract dispute. 
  • Century Cloud Core has had four other claims filed against it by electronics companies in regards to purchasing disagreements. 

A district court in Shenzhen, China has frozen $680,000 assets belonging to a subsidiary of bitcoin mining manufacturing giant Bitmain.

According to a ruling published Dec. 13, the Shenzhen Bao’An District Court ruled in favor of electronic device supplier Dongguan Yongjiang Electronics in their dispute with Shenzhen Century Cloud Core. 

In September, Yongjiang asked the courts to freeze 4.7 million yuan ($680,000) in assets belonging to Century Cloud Core, a company fully owned by Bitmain Technologies. The subsidiary plays a role in manufacturing, quality assurance and packaging for Bitmain. 

In addition to the contract dispute with Yongjiang, Century Cloud Core has had four other cases filed by different electronic manufacturers in 2019. One plaintiff, Youda Electronics, filed for asset protection of 5.2 million yuan ($745,000) relating to a disagreement in purchasing contracts. However, all other trade disputes besides Yongjiang’s have withdrawn their claim.

Bitmain continues to gear up ahead of bitcoin’s next block reward halving in May 2020. In an internal meeting held in November, co-founder Jihan Wu told staff the company is focused on engaging miners in anticipation of additional sales spurred by the halving.

Featured Image Credit: Photo via Pixabay.com