A post on Twitter suggests that Bitmain co-founder Michly “James” Zhang Ketuan could be facing billions of dollars in fines, possible detention, and a complete falling out with business partner Jihan Wu.
Conflicting reports have the crypto community scrambling to find out more about one of the industry's most high-profile crises.
Bitmain co-founder at the center of growing speculation and uncertainty
Bitmain is a pioneer in Bitcoin mining hardware, controlling equipment that powers over 74% of the world's Bitcoin hash rate. It is also responsible for the chips used in AI data centers running the Nvidia H100.
The company currently stands at the intersection of geopolitics, legal oversight, and internal conflict.
On December 21, 2025, crypto industry veteran Chandler Guo sparked speculation with a cryptic social media post referencing the ordeal of “deep-sea fishing” by industry colleagues. The term is used to refer to secret detention in China, which is worth billions of dollars over a six-month period.
Guo said the person emerged unscathed, but learned a hard lesson: You can't trust even your biggest supporters. When they fall, their companions suffer as well.
“Beside me, I have an old friend in cryptocurrency circles who has just experienced deep-sea fishing. Billions of US dollars are said to be involved, and he has been dealing with this issue for half a year. Fortunately, he has already come out of it safely… He relied on the connections of his benefactors to defeat his enemies, but he was also bitten back by the benefactors’ own enemies,” Guo wrote.
Observers quickly linked Mr. Guo's account to Mr. Zhang. Rumors circulating in the crypto industry suggest a fine of between $1 billion and $10 billion, but nothing has been officially confirmed.
Some reports say Zang paid a $1 billion fine, but others say he fled to Indonesia two months ago and is still missing. Leaders of the popular Chinese community in X acknowledged two important developments.
- Recent turmoil in mining operations in Xinjiang and
- Internal conflict between Bitmain's co-founders intensifies.
Dual CEO system collapses due to conflict between founders
Bitmain's dual CEO structure, which allowed both Zhang and Wu to lead the company, completely collapsed in 2025. Mr. Wu, a graduate of Peking University, reportedly used his political connections to challenge Mr. Zhang, a graduate of the Chinese Academy of Sciences who focused on chip design and production.
The rift between the two companies reflects broader industry risks and points to the dangers of business entanglement with influential backers.
This alleged internal upheaval comes as Bitmain faces increasing external pressure. Mr. Zhan has focused on technical operations, while Mr. Wu has led strategic partnerships and business development.
The absence of either founder could create an operational gap as Bitmain continues to be the center of Bitcoin mining around the world. The company is already facing a lawsuit from Old Const, which claims it violated its hosting agreement and is trying to take back mining hardware without cause.
Geopolitical risks and infrastructure vulnerabilities
Beyond the corporate dispute, Bitmain faces increased scrutiny from U.S. authorities over potential hardware security threats. In June, Bitmain and two other companies moved to the United States to avoid new tariffs and optimize their supply chains.
But national security concerns increase the risk, as the company's mining infrastructure is embedded in both cryptocurrency and AI data centers.
Any breach could have ripple effects on the global Bitcoin network, highlighting the cryptocurrency's continued vulnerability to geopolitical tensions.
A recent crackdown on mining farms in Xinjiang, coupled with Mr. Zhang's alleged detention, has fueled speculation of a concerted regulatory push.
The crypto sector remains vigilant as this situation could impact the mining hardware market, supply chain, and competitive dynamics.
This post reports Spark questions about Bitmain's leadership and internal conflicts and first appeared on BeInCrypto.
