Breaking news: Ebang, a mining machine manufacturer preparing for a US stock listing, has been criminally prosecuted!

On December 9, mining machine manufacturer Ebang International received a "Notice of Case Filing" and learned that the Chaoyang Branch of the Beijing Public Security Bureau had filed a case against Zhejiang Ebang and Yunnan Ebang for suspected contract fraud. Ebang then issued an emergency statement. Previously, Ebang International had released a signal that it was preparing for a US stock listing, and being involved in a criminal dispute may affect the listing process.

Yibang International said that the listed company that reported the case, Yingzhong Internet, owed more than 100 million yuan and was in the process of civil litigation. Since Yibang International recently reported Yingzhong Internet to the China Securities Regulatory Commission and other institutions for suspected violations of laws and regulations, the other party retaliated by filing a malicious criminal report.

Yibang International stated that no company personnel had been taken away for investigation, and that current production, operations and personnel were stable and unaffected.

On December 4, Yibang announced that it would be listed in the United States. In the first six months of 2018, the company's revenue was 2.1 billion yuan and its profit reached 135 million US dollars, but in the third quarter of 2018, its revenue and gross profit "dropped sharply".

The scale of Ebang is similar to that of Canaan, the first blockchain/mining machine stock, but far smaller than Shenma and Bitmain. In June this year, Ebang International had expressed its consideration of listing in the US market.

According to Yibang Hong Kong's prospectus, a total of two A-share listed companies purchased mining machines worth a total of nearly 700 million yuan in the first half of 2018. They are the company's two largest customers, accounting for about 34% of Yibang International's total revenue.

The largest customer is Beijing Xincailiang Technology Co., Ltd., a wholly-owned subsidiary of Shenzhen-listed Zhongying Internet Technology Co., Ltd., which purchased a total of RMB 360 million worth of Yibang International mining machines. This is the company that is currently in dispute and has reported the case.

In 2018, the price of Bitcoin has been falling since it reached over $17,000 in early January, with the most significant drops occurring in January, February, March and November, with monthly declines exceeding 30%. It can be judged that the sharp drop in the price of Bitcoin may be the core reason for the economic dispute between the two parties.

In addition, according to China Business News, in October 2018, Yibang International was involved in the Yindou.com P2P case filed by Beijing Public Security Bureau. Yindou.com investors found that Yibang International had large-scale financial transactions with Yindou.com, and pointed out that Yibang International suspected of using more than 500 million yuan of funds from Yindou.com to inflate sales revenue.

Full text of Ebang International's emergency statement: Ebang International's emergency statement

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