According to a recent report by Chinese media outlet Sanyan Blockchain, Wu’s demotion is part of a larger board restructuring that comes three months after Bitmain priced its upcoming IPO at $18 billion.
“After changing to a supervisor, there is no voting right, so the power is smaller and cannot participate in the business decision-making of the enterprise. It can only exist as a supervision,” explained Tian Yangang, a Bitmain lawyer familiar with the matter.
This board reshuffling adds to a growing list of question marks surrounding to the company’s upcoming IPO. A report by the Financial Times this week revealed that Bitmain had significantly smaller profits in its initial public offering prospectus than in documents related to earlier funding rounds.
Update: Bitmain told CCN in an email that there have been no board departures and Jihan Wu will continue to lead the company as co-chair.
More: Lawyer: Wu Jihan has no right to participate in business operations after withdrawing from the director of Bitcoin
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