Innosilicon official reponse to Bitmine lies - Let the evidence do the talking
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On behalf of Innosilicon Inc, the proud real owner of A1 BTC ASIC and A2 LTC ASIC, I would like to make it clear that we are very shocked to learn that Bitmine shamelessly pointed their finger to us for their business failure due to a series of their own engineering mishaps and reckless business risk taking. Innosilicon has done nothing wrong here and we continue to deliver our quality product even till this date. We have full evidence (email exchanges, legal contract, shipping record, business plans, apology letters etc) that Bitmine management tried to use Innosilicon as scapegoat to mislead their customers for their failure to fulfill their customer orders. We would like to provide full evidence to assist those who filed lawsuit against Bitmine. Our contact info is listed below and let us suit Bitmine liars. The world deserves to know the truth.
1. A1 chip came out on time and working. Chips were fully delivered at normal 28nm foundry yield to Bitmine with Bitmine CEO email acknowledgement and appreciation. Full amount of ASIC are delivered and tested with clear marking and there is no excuse for Bitmine not to deliver their mining machines. It is Bitmine who failed to turn working A1 into good miners to customers. In fact, they received our 1st batch of over 50K A1 chips at cost in early January of 2014 yet failed to produce working miners till April, at that time, BTC market was very hot and miners were in huge demand yet they failed to capitalize. Even then, Bitmine A1 Miner system was reported still not stable which is the biggest reason why they missed market windows. In these two critical months they received another over big batch of low price chips ahead of anyone which were enough to fulfill their customer miner orders. The only reason of their failure to produce miners were their system PCB design and DCDC design flaws. This is due to their poor engineering issues, thus wasted a lot of money by making tons of failed circuit boards, not due to our A1 chip issue. They are the one who is responsible for the failure of customer delivery. In the meantime, another Chinese miner manufacturer Dragon Miner came in after them and started to deliver working miners in late Feb and quickly ramped up very high volume with A1 directly purchasing from us with much higher cost month after month. On the other hand, Bitmine sat with the piles of working A1 chips and could not produce working miners. Yet they shamelessly blamed on all their failure on Innosilicon!
2. We never violated any agreement therefore they knew they have no chance to win any legal battle with us. This project became joint investment in Oct 2013 when they could not fund the project by following the previous contract funding terms. So they asked us to step in to fund half of the mask fee with a contract amendment where it stated that Innosilicon have the rights to sell the chips in the open market. If you read the amendment, you will see that why they absolutely don't deserve the exclusive rights for A1 chip. They were not forced to enter the agreement amendment, they should thank us for the investment to save the whole project.
3. The reason why Bitmine apologized to us with offical letter is that they themselves later violated the contract amendment by declaring to the whole industry that Bitmine own the exclusive rights of A1 and threaten lawsuit against anyone who buy A1 Chip from us directly. Obviously this is totally a lie and violation of our amendment and they had to apologize.
4. We have every evidence to show that Innosilicon developed and own 100% of the A1 ASIC intellectual property and our company is a world renown IP company with excellent ASIC design skills. Innosilicon not only independently developed 28nm A1 BTC ASIC, it also quickly developed A2 LTC ASIC. Both quickly became No. 1 in the market. Our business is all over the world and enjoy stellar reputation with zero complaint from anyone. Protecting IP rights is of paramount importance to our company and we never had any design IP from Bitmine. Bitmine was previously only 2 person company who had zero chip design experience. Can you believe that Bitmine could develop most advanced ASIC with their background? We stated in the contract that any design contribution from each company belongs to each company. Bitmine has zero actual ASIC design contribution in the chip. All they did was to provide us their system input and output files for us to simulate our design.
5. If you ask us, we have a lot to say why Bitmine failed to keep their promise to us and to their customers. 1st, Bitmine used the pre-order money from customers to build their own mining farms and conducted risky bitcoin trading, in both adventure, they lost big money. A1 would have been a lot more successful if they did their job right. I'd to say that the real problem for Bitmine is their weak management on risk and poor technical execution in a market that is full of competitors and time to market is of great importance. They had 2 months to prepare their miner design before our ASIC came out yet they did a terrible job in that after 4 months, their miner still don't work right and customers were all angry and they used us as excuses. I have many facts documented that how they failed so many times before producing a working miners. They made several big mistakes in rushing their production and wasted a lot of materials and chips and made us very very upset. We delivered chips marked with grades according to contract and they knew it. To this date, they still did not pay for some agreed chip shipment fees and we had to cover their unpaid shipment fees.
We are saddened by Bitmine's bankruptcy and failure to fulfill their customer promise. We are shocked that Bitmine management used baseless accusation as excuses to save their face and cover up their business risk takig and engineering mistakes. We have every evidence to show that Innosilicon has faithfully followed our contract and contract amendment and it is Bitmine that grossly mishandled their miner design and production with very unprofessional engineering execution. It is very obvious that A1 chip is a huge success, on time and with quality ,yet A1 miners from Bitmine could not ship on time and with quality to their customers months after. Isn't it clear that who did their job right, who did it wrong?
We reserve every rights to file lawsuit against Bitmine management if they continue to spread baseless rumors to damage Innosilicon reputation.Should you need more information, we are happy to help.
Best regards,
Joey Jiang
Innosilicon Marketing Director
[email protected]
On the bright side, I was one of the very Lucky ones and finally *did* get my miner from AMT on August 22, 2014 - and it is a 1.2THs version only because the folks in China (Iltek) that Josh Zipkin found would only make that speed.
