Li Xiaolai, a renowned and noted Chinese cryptocurrency investor, has stepped down from his partnership role at the Hangzhou Xiong’An Blockchain Fund, after a series of defamatory remarks made against him by Chen Weixing.
The Origin of the Quarrel
According to reports, Chen Weixing, a venture capitalist, has been making slanderous comments about Xiaolai, and Chen has called Li a “fraud.” The rivalry between the two investors has been marked by a series of particular events and accusations, including one reported by Coindesk that arose after Chen accusing Li of spending about 30,000 BTC on a gambling site. The funds were allegedly meant to be used to kick-start a fund that would mature in September last year, but was then extended to September this year.
The argument between the two led to a heated debate on WeChat, where Li responded with a post that said,
Once again, it’s not true. The fund was a private equity ‘equivalent to 20 million yuan ($3 million).’ And I never promised to guarantee the fund’s value using bitcoin. My quote was ‘We hope (this fund) can outrun the bitcoin market.’ As for the ‘due in September’ part, the fund was set up in a ‘4+1’ model, so it ought to due in September this year. Chen is just muddying the water.
Following further, defamations from Chen, Li has eventually announced that he will be resigning from his Weibo account as well as his partnership role at Hangzhou Xiong’An Blockchain Fund. He wrote,
The series of defamations from Chen Weixing against myself has brought material and negative impacts on the reputation of Xiong’An Blockchain Fund. … To let the Hangzhou government continue its push for blockchain development, I will resign from my role as a managing partner.
Given that Li is a noted Bitcoin evangelist in China and also a renowned crypto investor, the announcement was met with surprise by most crypto enthusiasts from China. The rivalry between Li and Chen has plumbed new depths of late; Chen even leaked a private meeting between Li and a number of individuals.
The leak that was orchestrated through social media, has recently provoked conversation in the Chinese crypto space. In the leaked meeting, Li is revealed to have identified a number of cryptocurrency big timers and called them names. For instance, he called Binance Exchange (a renowned Bitcoin and altcoin exchange) a “cheating controversy within the Chinese cryptocurrency community.” He went on further to call Qtum’s –co-founder a “Spin doctor.”
Following the leaked meeting, Chen has retorted by calling Li a “foul-mouthed liar”, leading to the questioning of the Xiong’An Blockchain Fund’s legality. Chen called on the government to allocate the 30 percent of benefits promised to it as a way of checking and balancing Li’s blockchain fund.
In response, Li has moved to sue Chen, claiming that Chen has zero knowledge of blockchain and is only looking to build up his own name.
Image Credit: Deposit Photos
What do you think about the rivalry between these two Chinese crypto investors? Share your thoughts in the comments section.