Bitmain co-founder Jihan Wu arrested? Reportedly fined 1 billion USD and gone missing for half a year.

The senior figure in the Crypto Assets field, Baoyi Ye (Guo Hongcai), hinted that there is an old fren in the crypto world who has experienced a “deep-sea fishing,” reportedly involving billions of dollars. Although he did not name names, multiple KOLs have followed up on the rumors, pointing to Bitmain co-founder Micree Zhan. The term “deep-sea fishing” is usually used to describe secret detentions taking place in China. Rumors suggest that the fine could be between 1 billion and 10 billion dollars, but this has not yet been officially confirmed.

Bao Er Ye's vague revelations and the community's wild speculations

The post by Bao Er Ye on platform X is extremely vague, using a lot of metaphors and hints. Phrases like “distant ocean fishing,” “billions of dollars,” “tossed around for half a year,” and “luckily, the person has come out safely” deliberately avoid direct naming, but provide enough clues for the community to speculate. Bao Er Ye also added: “He used his supporters' relationships to suppress his opponents, but was instead backstabbed by the enemies of his supporters.” This kind of “killing with a borrowed knife only to be killed” plot is very dramatic.

The crypto assets community quickly connects these clues to Janke Tuan. Janke Tuan is the co-founder of Bitmain, responsible for technology and chip design, with a background from the Chinese Academy of Sciences. Recently, there are indeed signs indicating that his whereabouts have become a mystery: public events have vanished, social media has gone silent, and Bitmain's official statements have not mentioned his current situation. More critically, the Xinjiang mining farms have recently faced a massive crackdown, with 400,000 mining machines being shut down, while the Xinjiang mining farms have deep ties to Bitmain.

Three Evidence Chains of the Rumors Surrounding the Capture of Zhan Ketuantuan

Timing Matches: Bao Er Ye stated that “it has been half a year of tossing and turning”, estimating that it started around June 2025, which coincides perfectly with the time when Zhan Ke Tuan's public appearances decreased.

Xinjiang Mining Crackdown: In December, there was a large-scale shutdown of mining operations in Xinjiang, where Bitmain has deployed a large number of mining machines, possibly involving illegal operations.

Wu Jihan Successfully Seizes Power: The dual CEO system collapses, Wu Jihan leverages political connections to challenge Zhang Kexuan, implying that Zhang Kexuan is losing power.

However, contradictory reports have made the truth even more elusive. Some reports claim that Zhang Ketan has paid a $1 billion fine and has escaped, while others state that he fled to Indonesia two months ago and has been missing since. These two claims are completely opposite, and possibilities include: the information from Bao Er Ye is inaccurate, or Zhang Ketan's situation is still changing, or someone is deliberately releasing false information to confuse the public.

Before there is more news from the official side, these can only be considered rumors. However, the rumors themselves have already caused harm to Bitmain. Customers may worry about the stability of mining machine supply, investors may question corporate governance, and competitors may seize the opportunity to grab market share. This “uncertainty” itself is the greatest risk.

The Grudge Between Zhang Kexuan and Wu Jihan

The internal strife of Bitmain is not news, but a six-year-long drama. Bitmain was established in 2013, co-founded by Jihan Wu and Micree Zhan. Jihan Wu is a technical expert, a graduate of the Chinese Academy of Sciences, with 15 years of experience in integrated circuit development; Micree Zhan is an investment expert, with a background as a financial analyst and private equity fund manager. More than a decade ago, the two hit it off, targeting the Bitcoin mining chip market.

Bitmain quickly became the global leader in Bitcoin hashing power. At its peak, the company controlled over 70% of the world's Bitcoin hashing power (currently about 74%) and was valued at hundreds of billions of dollars. In 2018, they even planned to go public in Hong Kong, but the plan was shelved due to market volatility and regulatory pressure. The failed IPO became a catalyst for internal strife.

Around 2018, strategic differences emerged between the two: Janke Tuan leaned towards a technological route, promoting AI chips and mining hardware; while Wu Jihan was optimistic about blockchain finance and investment, preferring to issue coins and expand the ecosystem. In October 2019, internal strife intensified. Wu Jihan suddenly “returned as a king,” dismissing Janke Tuan from his positions as chairman and legal representative, and sent an email stating, “I must come back to save this company.”

Jiang Ke-tuan refused to back down, threatening to retaliate with legal weapons after being “fired” in November. A tug-of-war ensued: Jiang Ke-tuan attempted to regain control, even leading to a farcical incident of “seizing the business license.” In May 2020, Wu Jihan's side changed the company's legal representative and relocated employees to Chongqing. Such open infighting is extremely rare, with the two founders tearing each other apart for control, plunging Bitmain into chaos.

At the end of 2020, both parties reached a settlement after multiple litigations. Janke Tuan controls the core mining machines and AI business of Bitmain; Wu Jihan receives financial assets such as Bitdeer (which has gone public in the US) and resigns as CEO. On the surface, it is a peaceful breakup, but the competition between the two has never ceased. Bitdeer is aggressively expanding its mining business in the US and Northern Europe, directly competing with Bitmain. This “still rivals after the split” relationship means that any crisis faced by one party may be seen as an opportunity by the other.

74% Geopolitical Vulnerability of Hashrate Dominance

Bitmain is a pioneer in the field of Bitcoin mining hardware, with its equipment driving over 74% of the global Bitcoin hash rate. Additionally, it provides chips for AI data centers running NVIDIA H100 graphics cards. The company now finds itself at the crossroads of geopolitical tensions, legal scrutiny, and internal corporate conflicts.

74% of the hash power control is an astonishing number. This means that three-quarters of the global Bitcoin mining equipment comes from Bitmain, and this monopoly position is both an advantage and a risk. The advantage lies in pricing power and technological leadership, while the risk is becoming the primary target of regulations in various countries. After China banned mining, Bitmain's equipment flowed to Kazakhstan, the United States, Russia, and other places, but this global layout also exposes it to regulatory risks in multiple jurisdictions.

In addition to internal disputes within the company, Bitmain is also facing scrutiny from U.S. authorities due to potential hardware security threats. In June of this year, Bitmain, along with two other companies, relocated its headquarters to the United States to evade new tariffs and optimize the supply chain. However, since the company's mining infrastructure is simultaneously embedded in encryption and AI data centers, national security issues have exacerbated the risks. Any compromise could trigger a chain reaction in the global Bitcoin network.

Recently, the mining operations in Xinjiang have faced severe crackdowns, and with the Jeck Group being accused of detention, speculations have arisen regarding coordinated regulatory pressure. If the Jeck Group is indeed under investigation for involvement in illegal mining in Xinjiang, a fine of 1 billion dollars is not impossible. China has consistently imposed strict measures against virtual currency mining, and once activities such as power theft, subsidy fraud, and illegal operations are confirmed, fines and criminal liabilities may be pursued.

The crypto assets industry remains vigilant, as this situation could impact the mining hardware market, supply chain, and competitive landscape. If Bitmain falls into chaos due to a leadership crisis, its 74% market share may be divided among competitors like MicroBT (Shenma Miner), Canaan (Canaan Creative), and others. For global miners relying on Bitmain equipment, supply chain stability and after-sales service may also be affected.

If the rumors are confirmed, this case will become the largest case of China's crackdown on encryption this year. It not only affects one company in the crypto world, but may also shake the entire Bitcoin mining industry chain. Investors should pay close attention to subsequent official news and remain cautious until the truth is clear. For investors holding BITMAIN-related investment targets (such as certain mining stocks or trust products), they should assess the risks and consider reducing their positions.

For the entire encryption industry, this incident once again warns of the risks of centralization. When 74% of the computing power comes from a single company, any crisis faced by that company poses a systemic risk to the entire network. Although Bitcoin is decentralized at the protocol level, it is highly centralized at the hardware supply chain level, which is a structural issue that the industry needs to recognize and improve.