Bitmain, China’s crypto-mining giant is about to close its development center, Bitmaintech Israel by this week, according to a report by Israel’s news outlet Globes.
The development center was created in 2016 in Ra’anana, under Vice President for International Sales and Marketing, Gadi Glikberg, who will be leaving the company along with 23 other employees.
The closure was due to the fall in cryptocurrency market prices and a massive decline in the market of digital currency.
The Ra’anana development center was working on the development of blockchain technology and AI-related technologies, Connect BTC mining pool and establish the foundation of Sophon.
Citing the reason for the massive lay-off, Glikberg told the employees of Bitmain’s Israeli Staff:
“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.“
Back in July, the company had announced that it was planning on expanding the Israeli development, with an effort to increase its activities in research and development.
Glikberg also told the employees “companies that have already shown an interest in recruiting staff,” also promising that the human resources department will assist them in all possible ways.
The company is currently facing two lawsuits, first is the trial of $5 million aimed at illegal mining, which was filed in North District Court of California against Bitmain’s United States and entities from China.
The second lawsuit was filed against Bitmain, Bitcoin.com, Rogen Ver and Kraken Exchange. The case filed against them was because they were using illegal methods and practices to maneuver the BCH network for their benefits.
Earlier in December, Israel has been witnessing massive repression on unreported cryptocurrency earnings. Cryptocurrencies in Israel are considered as a financial asset, and this is why private investors are imposed with 25 percent of the tax.
Since the start of 2018, Bitmain is facing a plethora of issues, which also is in debt to the Taiwan Semiconductor Manufacturing Company(TSMC), while the CFO of the company issued an ultimatum to the company by saying, “pay or we cut you off for good.”