The rise of MicroBT has undermined Bitmain’s dominance in the Chinese ASIC market. This is not Bitmain’s first lawsuit against a competitor.
Cryptocurrency mining hardware company Bitmain has again sued its competitor MicroBT. The company has filed a lawsuit with the Beijing Intellectual Property Court, which accuses MicroBT and its founder, Yang Zuoxing, of stealing trade secrets, The Block reports, citing Chinese media outlets.
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- Bitmain is demanding that MicroBT reimburse her $ 15 million in damages. The company claims that Zuoxing, who worked on the flagship AntMiner S7 and S9 models in 2016, used its corporate expertise to launch a competing product a month after breaking off relations with Bitmain.
- This is far from the first lawsuit Bitmain has filed against MicroBT. The company began its first civil proceedings against its competitor in 2017. At the time, she claimed that Zuoxing had infringed a patent for the production of ASIC equipment. In October 2018, MicroBT won the case and canceled Bitmain’s patent through the Intellectual Property Court.
- In December 2019, a week after MicroBT announced the launch of the WhatsMiner M30 miner, Zuoxing was arrested on charges of embezzlement of $ 14,000.The police did not provide details, however, market participants associate the arrest of the head of MicroBT with the competition against Bitmain. Zuoxing was only released in August 2020.
- Bitmain and MicroBT are the largest cryptocurrency mining hardware manufacturers in China. The growth of MicroBT has undermined Bitmain’s dominance in this market. According to the research department of BitMEX, from 2017 to 2019, the company actively conquered the market, taking most of its customers from Bitmain.