{"id":94883,"date":"2018-12-12T23:45:20","date_gmt":"2018-12-13T07:45:20","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=94883"},"modified":"2018-12-12T22:51:55","modified_gmt":"2018-12-13T06:51:55","slug":"bear-market-forces-bitmain-to-close-blockchain-development-center-in-israel","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/bear-market-forces-bitmain-to-close-blockchain-development-center-in-israel\/","title":{"rendered":"Bear Market Forces Bitmain to Close Blockchain Development Center in Israel"},"content":{"rendered":"<p>The downturn of the crypto market has forced Beijing-based Bitcoin mining giant <a href=\"https:\/\/cryptoslate.com\/companies\/bitmain\/\">Bitmain<\/a> to close its blockchain development center in Israel and lay off all of its employees, Israeli business news outlet Globes reported on December 10, 2018.<\/p>\n<h2>Shutting Down All Operations in Israel<\/h2>\n<p>While many predicted that the bear market wouldn't last longer than a few weeks, the downfall of the crypto market shows no signs of stopping, despite the end of the year getting closer. The extremely unfavorable conditions have already forced many blockchains and crypto businesses to close down or lay off staff in order to remain afloat.<\/p>\n<p>And while most casualties have been smaller startups, the latest one is none other than industry giant Bitmain. The Beijing-based mining rig manufacturer has been hit hard by the crypto market and is struggling to remain profitable.<\/p>\n<p><a href=\"https:\/\/en.globes.co.il\/en\/article-bitmain-closing-israeli-development-center-1001264083\">According<\/a> to Globes, an Israeli business news outlet, Bitmaintech Israel, Bitmain's development center set up in Ra'anana back in 2016, will close this week and its 23 employees will be laid off. The head of the company, Gadi Glikberg, who serves as a VP at Bitmain, will also be leaving the business.<\/p>\n<blockquote><p>&#8220;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,&#8221; Glikberg reportedly told Bitmaintech's Israeli employees.<\/p><\/blockquote>\n<p>During its two-year run, Bitmain's Israeli center worked on the Connect BTC mining pool and building AI technology used in the company's Sophon project.<\/p>\n<h2>Hard Year for Bitmain<\/h2>\n<p>Neither Bitmaintech nor Bitmain have commented on the news yet, leaving investors worried about the company's stability.<\/p>\n<p>The news about the shutdown of the Israeli center comes amidst two lawsuits the company is currently facing. A $5 million <a href=\"https:\/\/www.scribd.com\/document\/393870365\/Bitmain-Class-Action\">class-action<\/a> lawsuit was filed in the North District Court of California against Bitmain's U.S. and Chinese-based entities, accusing them of unauthorized mining practices.<\/p>\n<p>Another lawsuit was <a href=\"https:\/\/globenewswire.com\/news-release\/2018\/12\/06\/1663224\/0\/en\/UnitedCorp-Launches-Suit-against-Bitmain-Bitcoin-com-Roger-Ver-Kraken-Bitcoin-Exchange-and-others-Alleging-Hijacking-of-the-Bitcoin-Cash-Network.html\">filed<\/a> against Bitmain, Bitcoin.com, Roger Ver and the <a href=\"https:\/\/cryptoslate.com\/companies\/kraken\/\">Kraken<\/a> Bitcoin Exchange, with the case alleging that the defendants manipulated the Bitcoin Cash network for their benefit.<\/p>\n<p>In addition to the legal troubles the company has faced in 2018, Bitmain is also struggling with financial problems. Back in September 2018, a report from <a href=\"https:\/\/cryptoslate.com\/companies\/bitmex\">BitMex<\/a> Research <a href=\"https:\/\/blog.bitmex.com\/unboxing-bitmains-ipo\/\">showed<\/a> that the company had a net loss of $395 million in the second quarter of 2018.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The downturn of the crypto market has forced Beijing-based Bitcoin mining giant Bitmain to close its blockchain development center in Israel and lay off all of its employees, Israeli business news outlet Globes reported on December 10, 2018. Shutting Down All Operations in Israel While many predicted that the bear market wouldn&#8217;t last longer than [&hellip;]<\/p>\n","protected":false},"author":106,"featured_media":94884,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2376],"tags":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bear Market Forces Bitmain to Close Blockchain Development Center in Israel<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/bear-market-forces-bitmain-to-close-blockchain-development-center-in-israel\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bear Market Forces Bitmain to Close Blockchain Development Center in Israel\" \/>\n<meta property=\"og:description\" content=\"The downturn of the crypto market has forced Beijing-based Bitcoin mining giant Bitmain to close its blockchain development center in Israel and lay off all of its employees, Israeli business news outlet Globes reported on December 10, 2018. Shutting Down All Operations in Israel While many predicted that the bear market wouldn&#039;t last longer than [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/bear-market-forces-bitmain-to-close-blockchain-development-center-in-israel\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2018-12-13T07:45:20+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2018-12-13T06:51:55+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/12\/bear-market-close-israel-social.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Priyeshu Garg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Bear Market Forces Bitmain to Close Blockchain Development Center in Israel\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Priyeshu Garg\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/bear-market-forces-bitmain-to-close-blockchain-development-center-in-israel\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/bear-market-forces-bitmain-to-close-blockchain-development-center-in-israel\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/priyeshu-garg\/#person\",\"name\":\"Priyeshu Garg\",\"url\":\"https:\/\/cryptoslate.com\/author\/priyeshu-garg\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/priyeshu-garg\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/priyeshu-garg\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/08\/author-priyeshu-garg-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/08\/author-priyeshu-garg-300x300.jpg\",\"caption\":\"Priyeshu Garg\"},\"jobTitle\":\"Analyst\",\"description\":\"Priyeshu is a software engineer who is passionate about machine learning and blockchain technology. 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