Bitcoin miners ( BTC ) maker Canaan has filed a lawsuit in China against HighSharp, the chip designer for AGM Holdings and new maker of Bitcoin application-specific integrated circuit (ASIC) chip in the market.
According to official documents, Canaan is suing Shenzhen City’s HighSharp and Sichuan’s Yinbimei for manufacturing and selling bitcoin mining chips and hardware allegedly based on Canaan’s previously patented models.
Nasdaq-listed Canaan is demanding that the accused halt production of the machines and pay 90 million yuan ($14 million) in damages to the company.
HighSharp was founded in 2016 by Li Chenjun and Wangxing, with a focus on integrated circuit design. In 2013, the company’s founders even launched an ASIC bitcoin chip called “Clam Miner”, which failed to achieve its intended goal.
As previously reported by The Block, as of September, AGM was a Nasdaq-listed accounting and software resource planning firm with no prior experience in the cryptocurrency market .
The company has announced its pilot project to produce ASIC bitcoin miners in recent months and has hired Li Chenjun of HighSharp to be its co-CEO and president.
Later, AGM entered into a partnership agreement with HighSharp, in which HighSharp would prioritize its bitcoin ASIC chip model to AGM, which, in turn, would find buyers for orders of at least US$100 million up to March 2022.
Last month, AGM announced that it had received an order for 50,000 units of its KOI C16 bitcoin ASIC chip from Canadian mining hardware maker MinerVA, which is then expected to ship at least 45,000 units of its latest generation of equipment for American crypto mining companies Stronghold Digital and Terawulf.
This Wednesday (3), AGM announced that it had received an order for 10,000 units from CCNC, a Chinese bitcoin miner, but listed in the United States, in the amount of US$ 65 million.