The block reward mining hardware manufacturer giant Bitmain is facing an investigation by law enforcement agencies in Taiwan over concerns about the company’s human resources practices in the country. The Taiwan New Taipei District Prosecutors Office is reported to have carried out inspections at seven office locations in Taiwan of companies linked to Bitmain. Investigations are also underway into 19 executives connected to the companies involved.

The companies under question are accused of hiding their ties to Bitmain. 

According to local press reports, Taiwan authorities probed company materials, including books, contracts, job offers, computer logs, phone records, confidentiality agreements, and other documents. As a result of the investigation, authorities have also discovered that Bitmain has incorporated two subsidiary companies in Taiwan within the semiconductor sector, contrary to local laws designed to protect the industry from Chinese investors. The companies under investigation are accused of hiding their ties to Bitmain, as a mainland-China-based company, despite helping poach personnel from the Taiwan semiconductor industry.

Bitmain is accused of talent poaching. 

Bitmain is accused of securing the services of hundreds of engineers from Taiwan over the past three years, offering in many cases to double current salaries, which is not allowed in the country. The semiconductor industry, central to Taiwan’s economy, is subject to local intellectual property protection measures, and violations of these measures are prosecutable by the authorities in Taiwan. It is currently illegal for China-based companies and individuals to invest in semiconductor businesses in Taiwan. Chinese companies or individuals looking to set up Taiwan subsidiaries in the sector are also required to obtain pre-approval from Taiwan’s Ministry of Economic Affairs in order to establish itself in the country legitimately. As reported earlier, Inner Mongolia is planning to shut all crypto mining farms in the region.