Posts on X (Twitter) suggest that Bitmain co-founder Micree “James” Zhan Ketuan may be facing a billion-dollar fine, alleged detention, and a complete fallout with business partner Jihan Wu.
Conflicting reports leave the crypto community scrambling to verify the details of one of the sector’s most high-profile crises.
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Bitmain Co-Founders at Center of Growing Speculation and Uncertainty
Bitmain, a pioneer in Bitcoin mining hardware, controls equipment powering over 74% of the global Bitcoin hash rate. It is also responsible for chips used in AI data centers running Nvidia H100s.
The company now finds itself at the intersection of geopolitics, legal scrutiny, and internal corporate strife.
On December 21, 2025, crypto veteran Chandler Guo sparked speculation with a cryptic social media post referencing an industry colleague’s “deep-sea fishing” ordeal. The term is used to describe covert detention in China, worth several billion dollars over six months.
According to Guo, while the individual emerged safely, he had learned a hard lesson that even the biggest backers are not reliable. When they fall, their associates suffer as well.
“There’s an old friend from the crypto circle by my side who just went through an experience of being deep-sea fished. It’s said to involve several billion US dollars, and he’s been dealing with it for half a year. Fortunately, the person has already safely come out of it…He relied on his backer’s connections to strike down his opponents, but he also got bitten back by the backer’s own enemies,” wrote Guo.
Observers quickly connected Guo’s account to Zhan. Rumors circulating in crypto circles indicate fines ranging from $1 billion to $10 billion, though none have been officially confirmed.
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Some reports claim Zhan paid a $1 billion penalty, while others allege he fled to Indonesia two months ago and remains missing. A Chinese community lead, popular on X, confirmed two key developments:
- Recent disruptions in Xinjiang’s mining operations and
- Escalating internal conflict between Bitmain’s co-founders.
Dual CEO System Collapses Amid Founder Conflict
Bitmain’s dual CEO structure, which allowed both Zhan and Wu to lead the company, collapsed completely in 2025. Wu, a Peking University graduate, reportedly used political connections to challenge Zhan, a Chinese Academy of Sciences alumnus who focused on chip design and production.
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Their rift mirrors broader industry risks, demonstrating the dangers of intertwining business with influential backers.
This alleged internal upheaval comes as Bitmain faces mounting external pressures. While Zhan historically focused on technical operations, Wu has led strategic partnerships and business development.
The absence of either founder could leave operational gaps at a time when Bitmain remains central to Bitcoin mining worldwide. The firm is already facing a lawsuit from Old Const alleging breach of a hosting deal and attempts to reclaim mining hardware without cause.
Geopolitical Risks and Infrastructure Vulnerabilities
Beyond corporate disputes, Bitmain faces scrutiny from US authorities over potential hardware security threats. In June, Bitmain and two other firms relocated to the US to bypass new tariffs and optimize supply chains.
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However, with the company’s mining infrastructure embedded in both crypto and AI data centers, national security concerns amplify the stakes.
Any compromise could ripple through global Bitcoin networks, highlighting crypto’s ongoing vulnerability to geopolitical tensions.
Recent crackdowns on Xinjiang mining farms, combined with Zhan’s alleged detention, have fueled speculation of coordinated regulatory pressure.
The crypto sector remains vigilant, as the situation could impact mining hardware markets, supply chains, and competitive dynamics.