Bitmain may have misled investors in pre-IPO funding | Bakkt could get greenlight for bitcoin futures | Bitfury exploring potential IPO

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“With stories about crypto hacking continuing to dominate headlines, it’s obvious that security must be top of mind for all stakeholders in the crypto space” — Pascal Gauthier, President Ledger

The Big Block

Bitmain, the crypto mining giant, had been a flashpoint since its founding five years ago, and a report from CoinDesk today will only add fuel to the fire. The crypto news site says Bitmain may have misled investors in its recent $1B funding round -- a capital raise ahead of Bitmain's anticipated IPO. If the allegations prove true, the IPO itself could be delayed or shelved as Bitmain might face financial liability.

CoinDesk raised the following concern: When soliciting investment in the $1B round, the company sent out pitch decks implying that Digital Sky Technologies Global and GIC Private Limited had both invested in Bitmain. Apparently, that isn't true in either case. CoinDesk found three versions of the pitch deck -- two in English, one the site translated from the Chinese -- that claimed the two entities had invested in the earlierSeries B round. At that time, Bitmain raised a whopping $400 million at a valuation of $12 billion. In the recent fundraise, Bitmain reportedly achieved a small bump in valuation to $14B while taking in the additional $1B.

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Around The Block

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