A post on X (Twitter) indicated that Micree “James” Zhan Ketuan, the co-founder of Bitmain, may be facing massive fines in the billions of USD, detention on suspicion, and severe conflicts with business partner Jihan Wu.
Conflicting reports have caused the crypto community to scrutinize the details of one of the most high-profile crises in the industry.
The co-founders of Bitmain are amidst rising speculation and uncertainty.
Bitmain, as a pioneer in Bitcoin mining hardware, has controlled devices that drive over 74% of the global Bitcoin hash rate and is also responsible for chips used in AI data centers utilizing Nvidia H100s.
The company thus faces a crossroads of geopolitics, legal scrutiny, and internal conflicts.
On December 21, 2025, Chandler Guo, a veteran in the crypto industry, sparked speculation with a social media post about a fellow industry participant who experienced a “deep-sea fishing” experience, referring to secretive detention in China involving billions of USD over six months.
According to Guo, even though the individual emerged safely, he learned the important lesson that even great backers cannot always be trusted; when they fall, those involved are affected as well.
A former friend in the crypto industry, who just went through a deep-sea fishing experience, got involved with several billion USD and has been dealing with this for half a year. Luckily, he is now safe... He had relied on the connections of backers to target competitors, but in the end, he was attacked by the backers' enemies, Guo wrote.
Observers are linking Guo's story with Zhan, while rumors in the crypto industry suggest fines ranging from 1 billion USD to 10 billion USD, though there has been no official confirmation.
Some reports claim Zhan has already paid a 1 billion USD fine, while others say he fled to Indonesia two months ago and is still missing. A leading Chinese community figure on X has confirmed two main points:
There has been a recent bottleneck in mining operations in Xinjiang, and
The conflict between Bitmain's co-founders has intensified.
The dual CEO system collapsed due to founder conflicts.
The dual CEO structure of Bitmain, which allowed both Zhan and Wu to jointly manage the company, completely collapsed in 2025, with Wu, a graduate of Peking University, reportedly leveraging political connections to challenge Zhan, a former student of the Chinese Academy of Sciences focused on chip design and manufacturing.
The rift between the two reflects broader industry risks, revealing the dangers of merging business with powerful backers.
This alleged internal turmoil is occurring while Bitmain faces increasing external pressure, with Zhan overseeing technical operations throughout, while Wu leads strategic partnerships and business development.
If either of the founders disappears, it could create operational gaps at a time when Bitmain still plays a crucial role in Bitcoin mining globally. The company is currently facing a lawsuit from Old Const, alleging breach of hosting agreements and attempting to reclaim mining equipment without cause.
Geopolitical risks and infrastructure vulnerabilities.
Additionally, there are internal disputes within Bitmain, which is also facing scrutiny from U.S. officials regarding hardware security threats. In June, Bitmain and two other companies moved to the United States to avoid new customs duties and optimize their supply chains.
However, with the company's mining infrastructure embedded in crypto and AI data centers in the United States and other countries, national security concerns increasingly impact crucial costs.
If there is even a slight compromise, it could have a cascading effect on the global Bitcoin network, further highlighting the fragility of crypto facing international tensions.
The recent crackdown on mining farms in Xinjiang, coupled with rumors of Zhan's detention, has further fueled speculation about regulatory pressures being coordinated.
The crypto sector is closely monitoring this event, as the situation may affect the mining hardware market, supply chains, and competitive advantages of each party.
