Bitmain Leadership Crisis: Internal Turmoil Raises Valid Concerns

Recent posts on X (formerly Twitter) reveal that Micree "James" Zhan Ketuan, a co-founder of Bitmain, may be facing serious legal issues, including a billion-dollar fine and possible detention, alongside a fallout with business partner Jihan Wu.

Key Takeaways

Micree Zhan may face legal challenges, including a substantial fine and potential detention.
Internal conflicts between Bitmain co-founders Zhan and Jihan Wu have led to a collapse of their dual CEO structure.
The company faces external scrutiny over security threats amid geopolitical tensions.
Bitmain's significant role in Bitcoin mining raises concerns about the impact of these disputes on the wider crypto ecosystem.

Amidst conflicting reports, the cryptocurrency community is attempting to unravel the complexities of one of the industry's most significant crises.

Internal Conflicts Among Bitmain Co-founders Stir Speculation

Bitmain, a leader in Bitcoin mining hardware, plays a crucial role in powering over 74% of the global Bitcoin hash rate. It also manufactures chips used in AI data centers that operate Nvidia H100s. Currently, the company is facing a mix of geopolitical tensions, legal implications, and internal disputes.

On December 21, 2025, Chandler Guo, a well-known figure in the crypto world, shared a vague social media post hinting at an industry colleague who experienced a "deep-sea fishing" situation. This term is often associated with covert detentions in China, potentially amounting to billions of dollars lost over six months.

Guo indicated that although the individual involved emerged unscathed, they learned a valuable lesson: big supporters can be unpredictable, and their failures can affect those around them.

“A friend from the crypto community recently went through a turbulent experience involving several billion dollars, which persisted for half a year. Thankfully, he has safely come out of it. He relied on his backer’s network to deal with his adversaries, but ultimately faced backlash from the enemies of that backer,” Guo wrote.

Observers quickly linked Guo’s remarks to Zhan, with rumors circulating in cryptocurrency networks suggesting potential fines between $1 billion and $10 billion, although no official confirmations have emerged.

Some reports assert that Zhan has already paid a $1 billion fine, while others claim he fled to Indonesia two months ago and is currently untraceable. A popular Chinese community leader on X confirmed two significant developments regarding this ongoing situation.

Collapse of the Dual CEO Structure Amidst Growing Tensions

Bitmain's unique dual CEO arrangement, which allowed both Zhan and Wu to manage the company, broke down completely in 2025. Wu, a graduate of Peking University, is said to have leveraged his political connections to challenge Zhan, who is known for his expertise in chip design and production from the Chinese Academy of Sciences.

Their growing divide reflects broader industry risks and highlights the challenges linked to mixing business with powerful influencers. This potential internal conflict occurs as Bitmain faces substantial external pressures. Historically, Zhan has been more focused on technical aspects, while Wu has prioritized business development and strategic partnerships.

The departure of either founder could create operational voids at a time when Bitmain remains a key player in the global Bitcoin mining landscape. Additionally, the firm is embroiled in a lawsuit initiated by Old Const, alleging a breach of a hosting agreement and their attempts to reclaim mining equipment without justification.

Navigating Geopolitical Risks and Infrastructural Challenges

Beyond internal discord, Bitmain is under scrutiny from US officials concerning possible hardware security risks. In June, the company, along with two other firms, relocated to the US to avert newly imposed tariffs and streamline supply chains.

However, with Bitmain’s mining infrastructure integral to both cryptocurrency and AI data centers, national security issues further heighten the situation’s stakes. Any disruption could affect global Bitcoin networks, showcasing the cryptocurrency sector's ongoing susceptibility to geopolitical strife.

The recent crackdowns on mining operations in Xinjiang, coupled with reports of Zhan's possible detention, have ignited further speculation about an organized regulatory crackdown. The cryptocurrency community remains watchful, aware that these developments could significantly influence mining hardware markets, supply chains, and competitive scenarios.