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Chinese Police Investigate Ex-Bitmain Employee for Bitcoin Miner IP Theft

  • Yang Zuoxing, CEO at MicroBT, is under investigation by the local police.
  • The investigation is allegedly related to a dispute over Bitmain’s intellectual property rights.
  • Yang nor MircroBT have released an official statement.

A former Bitmain employee, Yang Zuoxing, is under investigation by the local police in China. The case appears to be related to a dispute involving the intellectual property rights of the mining giant corporation.

Open Investigation

According to a report by the Chinese news outlet BlockBeat, Yang Zuoxing, the CEO at MicroBT, has been taken into custody by local police to assist in an open investigation that involves tens of millions of dollars. BlockBeat stated that the arrest of Yang is directly related to the production of crypto mining hardware citing insider information,

The news outlet wrote:

The risk of starting a business in the mining circle is very high. Not only must the company be prevented from being arrested by the old club.

The History Behind Yang and Bitmain

Yang was one of the leading engineers at Bitmain. He helped design the company’s crypto mining gear, including the Antminer S7 and the S9. He left the firm in June 2016 after its co-founders, Jihan Wu and Micree Zhan (the latter now forced out of Bitmain), declined his request for a stake of the business. A few months later, Yang started his own crypto mining chip company, dubbed MircoBT. At the time, he claimed that his hardware was as good, if not better than Bitmain’s.

Yang stated:

MicroBT’s flagship Whatsminer M10 can deliver better power efficiency than Bitmain’s S9i [and we are working] on upgrades to stay competitive as Bitmain rolls out new products. Their technology is great, but ours is too.

Soon after Yang created his company, Bitmain filed a lawsuit against him over patent rights. However, China’s State Intellectual Property Office (SIPO) dismissed Bitmain’s patent due to a lack of unique creativity in Antminer’s design.

According to SIPO:

If a technological solution sought by a patent has different characteristics than existing technologies, but such difference is public knowledge, then it is obvious the solution would incorporate this public knowledge.

At the moment, it is not clear why Yang is under investigation by the local police in China. But, it seems to be related to the dispute over intellectual property infringement that Bitmain and MicroBT had. The current controversy adds up to the civil war happening at Bitmain where its co-founders are fighting to gain full control over the company.

This article was edited by Samburaj Das.

Ali Martinez , 2019-11-10 07:49:12

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

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Nick Chong , 2019-11-10 12:00:38

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