[2018-12-10] Bitmain Closes Israeli Blockchain Development Center Citing Crypto

[cybersofts]

Bitmain Closes Israeli Blockchain Development Center Citing Crypto Market Conditions



Chinese crypto mining giant Bitmain is closing its development center in Israel and firing local employees, Israeli business news outlet Globes has learned Monday, Dec. 10.

Bitmaintech Israel — founded in 2016 to explore the use of blockchain technology, work on the Connect BTC mining pool and develop the infrastructure behind Bitmain’s artificial intelligence (AI) project Sophon — will close this week. All 23 employees will be fired, the Globes reports.

Gadi Glikberg, head of the Israeli branch as well as Bitmain vice president of international sales and marketing, is also leaving. The Globes reports that Glikberg linked the closure to the recent crypto market collapse:

    “The crypto market has undergone a shake-up in the past few months, which has forced Bitmain to examine its various activities around the globe and to refocus its business in accordance with the current situation."

Bitmaintech Israel has not responded to a request for comment by press time.

Bitmain is also currently facing two lawsuits. The first one, a class action lawsuit of $5 million focused on unauthorized mining, was filed in the North District Court of California against Bitmain’s United States- and China-based entities.

The second suit was purportedly filed against Bitmain, Bitcoin.com, Roger Ver and the Kraken Bitcoin Exchange. The case alleges that the defendants jointly used unfair methods and practices to manipulate the BCH network for their benefit.

In early December, Israel has seen a crackdown on unreported crypto earnings. According to local business newspaper Calcalist, Israeli tax authorities opened tax accounts for hundreds of Israelis who allegedly concealed cryptocurrency related revenues. As cryptocurrencies are treated as a financial asset in Israel, they are subject to a 25 percent tax for private investors.


Reference: https://cointelegraph.com/news/bitmain-closes-israeli-blockchain-development-center-citing-crypto-market-conditions

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[Harlot]

I just hope they are telling the true reason why they shutdown, worst case scenario is the Israeli Government forcing them to shutdown and they are told to come up for a reason why. But if they are telling the truth then it is pretty evident that the bear market is affecting a lot of crypto-centered businesses from crypto-exchanges downsizing to mining factories shutting down and now we are seeing blockchain centers shutting down. Crypto prices are really a big factor for the development of this industry there is no doubt about it.

[IconFirm]

Crypto prices are really a big factor for the development of this industry there is no doubt about it.

If that were true, how did it develop in the first place then? Development has always happened & always will, irrespective of price.

[buwaytress]

I just hope they are telling the true reason why they shutdown, worst case scenario is the Israeli Government forcing them to shutdown and they are told to come up for a reason why. But if they are telling the truth then it is pretty evident that the bear market is affecting a lot of crypto-centered businesses from crypto-exchanges downsizing to mining factories shutting down and now we are seeing blockchain centers shutting down. Crypto prices are really a big factor for the development of this industry there is no doubt about it.

Nah, I doubt this has anything sinister behind it. The state of Israel may not look too kindly on the currency itself but this was only a development centre - licence for which wouldn't have been approved in the first place. Plenty of other Bitcoin and blockchain-related enterprises with offices there.

Rise and fall of the tide, I'm actually surprised these companies didn't see it coming, having been in the game for so long. Perhaps the cost of shutting down isn't as much as I'd imagine though. Perhaps contraction and expansion is something they've always done, yet only today is covered publicly.