Exclusive: In order to regain the Bitmain legal person Zhan Ketuan sued the Beijing Haidian Market Supervision Administration

Wu Blockchain recently learned that Zhan Ketuan had sued the Beijing Haidian District Market Supervision Administration in an attempt to change Bitmain's decision to change its legal representative to Wu Jihan. However, Zhan Ketuan withdrew the lawsuit shortly after filing it. After the withdrawal, Zhan Ketuan is currently applying for administrative reconsideration.

According to a piece of information published on the Beijing Court Trial Information Network, Zhan Ketuan was dissatisfied with the industrial and commercial registration change made by the Beijing Haidian District Market Supervision Administration and filed an administrative lawsuit with the Beijing Haidian District People's Court. During the litigation, Zhan Ketuan filed an application to withdraw the lawsuit on November 14, 2019.

On October 28, the legal representative and executive director of Beijing Bitmain Technology Co., Ltd., the Beijing operating entity of Bitmain, were changed from Zhan Ketuan to Wu Jihan. On October 29, Wu Jihan issued an internal letter to remove Zhan Ketuan, another founder of the company, from all his positions in Bitmain. From that day on, no employee of Bitmain could execute Zhan Ketuan's instructions or attend meetings convened by Zhan Ketuan.

On November 7, Zhan Ketuan released an open letter, stating that he would return to the company as soon as possible through legal means.

From the above-disclosed documents, it can be seen that Zhan Ketuan immediately took the Beijing Haidian District Market Supervision Administration to court for changing its legal person, but then withdrew the lawsuit immediately. Legal professionals told Wu Blockchain that in this case, the judge usually tells the plaintiff that the chance of winning the case is almost zero, and recommends withdrawing the lawsuit on his own.

In early December, Zhan Ketuan organized a shareholders' meeting under the guidance of a lawyer, attempting to remove the existing directors, but failed because his shareholding ratio could not reach 50%. According to Bloomberg, Zhan Ketuan also submitted a subpoena to the Cayman Islands Court in December, asking the court to cancel the results of Bitmain's shareholders' meeting held in November. This shareholders' meeting cancelled Zhan Ketuan's original 10 votes per share and changed it to 1 vote per share.

One place where Zhan Ketuan’s legal actions have achieved some results is in his hometown of Fuzhou. The People’s Court of Changle City, Fujian Province, froze the RMB 3.6 million of equity and other investment rights held by Beijing Bitmain Technology Co., Ltd. in Fujian Zhanhua Intelligent Technology Co., Ltd., which belonged to Zhan Ketuan, from December 16, 2019 to December 16, 2021.