More

    Bitmain IPO Investors Were Misled by False Information on Crypto Mining Giant's Funding Round

    Those interested in investing in Bitmain and its pre-initial public offering (IPO) funding round received false information about it. Apparently, investors received reports that the company had secure financial funds from other important companies such as Digital Sky Technologies Global and GIC Private Limited.

    According to a report conducted by CoinDesk, there is no information about who decided to provide such a false information. At the same time, Bitmain did not answer questions regarding this situation.

    As per the investigation, one of the first versions is related to Bitmain having completed a $400 million dollars Series B round from Sequoia Capital and a pre-investment valuation of $12 billion dollars. The information was first provided in Chinese and then translated into English.

    There are also two other versions circulating according to CoinDesk. This information stated that Bitcoin raised $400 million at a $12 billion dollars valuation from Sequoia China, GIC and DST in a Series B round. This version circulated in social media and other networks.

    According to CoinDesk, Jan Wootten, a representative for DST Global, explained by email that DST Global did not invest in Bitmain. Furthermore, Josh Lindsfor, DST Global managing director, has also explained that DST Global did not invest in Bitmain.

    There are several individuals in the crypto community that say that Bitmain spread false claims about funding rounds. There were other reports in which they informed that other companies such as Tencent Holdings and SoftBank did not invest in Bitmain. However, IPO Zao ZhiDao, a WeChat news outlet popular in China reported that these two companies (SoftBank and Tencent) were investing in Bitmain. CoinDesk decided to contact IPO Zao ZhiDao but the author did not comment on the matter.

    Bitmain could be involved in a bigger problem if the community discovers that it has been responsible for advertising false claims in the pitch decks. According to Ashurst LLP Legal Counsel Hoi Tok Leung, said that Bitmain could face legal liability for committing ‘fraudulent or reckless misrepresentation’ reports CoinDesk.

    At the same time, Bitmain management could also be penalized with up to seven years in prison and very high fines. However, the decision should be taken by the Securities and Futures Commission of Hong Kong. In the United States, it is also possible for the US Securities and Exchange Commission (SEC) to pursue anyone they believe is seeking to raise capital from investors in the country with fraudulent campaigns.

    Bitmain is one of the most important and recognized companies in the cryptocurrency world. In the last years, it was able to create bitcoin and crypto mining hardware and build mining farms in China and other countries. At the same time, Bitmain has important mining pools that operate in the market.

    Binance was able to register billions of dollars selling mining equipment and management of mining pools. Additionally, it has also invested in robotics and artificial intelligence (AI) in order to diversify their investments.

    Furthermore, in September Binance decided to go public through an IPO on the Hong Kong Stock Exchange. The IPO market capitalization was valued between $40 to $50 billion dollars. In this way, the company was one of the most valuable virtual currency companies in the market.

    However, Bitmain could suffer the consequences of providing financial information that ended up being fake. And indeed, it would also have a negative impact on the overall market that has been falling since the beginning of the current year.

    Regulatory agencies all over the world are starting to control the market in a much more active way. They are searching for new ways to regulate the market, protect investors and avoid companies to perform illegal and fraudulent activities.

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    Avatar
    Bitcoin Exchange Guide News Team
    B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    3,261FansLike
    2,711FollowersFollow
    4,080FollowersFollow

    Live Bitcoin Price & Latest BTC Chart News

    Today's Latest Crypto News

    Open Interest on CME Bitcoin Futures Outgrowing BTC Price

    If BTC closes above the 200-day moving average, just above $9,000, we could see $10k Institutional investors leading the way for a new...

    Here’s How DeFi’s Smashing Growth Puts a Trillion-Dollar Case for Ethereum

    Total USD value locked in DeFi surpasses $800 million creates “a new paradigm for global finance” with one common theme Ether The trillion-dollar...

    This Uncannily Accurate Bitcoin Chart from Dec. 2018 Predicts a New ATH in 2020/21

    Analyst ‘s post from Dec. 2, 2018, correctly predicts Bitcoin’s bottom and momentum in 2019 Bitcoin price is currently hovering around $9,000 after surging...

    Lawmaker Proposes Bill For State-Chartered Institution For Blockchain & Crypto Innovations

    An Oklahoma lawmaker has come forward with the proposition of creating a financial institution chartered by the state and that functions as a central...

    Block.One's ‘Voice' Social Network Has An Open Door Policy To Other Blockchains, Not Just EOS

    During its June ICO, Block.one had indicated that its Facebook rivaling social network dubbed Voice, would be launched on the EOS network. However, plans...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.