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Saturday, February 4, 2023

3AC Up For Steep Challenges

3AC, a Chinese crypto mining company, is still facing challenges in its bankruptcy process. The firm reportedly owes investors millions of dollars and has been accused of mismanaging funds.

The bankruptcy process of 3AC, a Chinese crypto-mining company, is still ongoing amid the unknown whereabouts of several company founders.

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The bankruptcy process is ongoing because the founders are missing.

The founders are missing because they fled China after being arrested by Chinese authorities in June 2018.

3AC Bankruptcy Claim Getting Rough

In mid-February, crypto news outlet 8BTC reported that Chinese authorities had investigated the crypto mining firm and confiscated its assets amounting to $48 mln.

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The report noted that 3AC’s founder, Deng Hongfei, was accused of mismanagement by Shenzhen police in June 2018. It added that a few days later, the founder fled to the U.S., leaving his wife and two children behind in China.

However, since then there have been no updates on where Deng is currently located or whether he has returned home after resigning from his position as chief executive officer at 3AC’s parent company Bitmain Technologies Ltd.

The company’s assets were frozen after the investigation, and it was decided to file for bankruptcy.

The Chinese authorities have also been conducting an investigation into 8BTC, which is believed to be related to money laundering. The case will be turned over to the public prosecutor’s office of the People’s Bank of China (PBOC) once it is completed by a team from the Central Internet Financial Risk Special Remediation Task Force (CIFRSRF).

The report states that the company was not transparent with its financials, including the location of its mining farms and how much hash power they had. It also failed to disclose information about how much it owed its investors and suppliers.

Who are the founders?

The investigation into 3AC has also raised questions regarding the true identity of Niu Gensheng and Wang Mingzhi (aka Wang Zhenghua), as well as their whereabouts. It is alleged that these two individuals have been involved in cryptocurrency-related fraud before, but there is no evidence to back this claim up at this point.

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