The Layer1 startup, which mines Bitcoin in Texas, identified Canaan Creative founder Liu Xiangfu as part of the company’s leadership. Xiangfu himself denied any connection with the organization. This was reported by a Twitter industry insider under the handle BTCKING555.
BREAKING: Got tip from Asia that @Layer1Official has been sending around investor prez using Liu Xiangfu credentials/industry experience as FOUNDING MEMBER and Key Executive, while Xiangfu states he is not involved with Layer One and DID NOT JOIN🤔 @Alexanderliegl whats going on? pic.twitter.com/6r1bfgoRPZ
— BTCKING555 (@btcking555) August 20, 2020
In a Layer1 investor newsletter, Xiangfu is listed as the head of the supply chain, as well as a cofounder of the company. In the attached screenshot of the dialogue, he denies this information.
“I spoke with Layer1, but I did not join them,” Xiangfu writes.
Dovey Wan of Primitive Ventures confirmed the information.
I was hesitant to spell it out but ya sad it’s true
In Chengdu RN with entire mining community coming for the big annual gathering it has become a joke already https://t.co/g3Q92xWCOV
— Dovey 以德服人 Wan 🪐🦖 (@DoveyWan) August 21, 2020
BTCKING555 also said that Layer1 may have distorted information about raising $50 million in investments. Late last year it was reported that the company raised that amount from a number of prominent venture capitalists, including PayPal cofounder Peter Thiel.
On another note we got tip the company never raised the full $50 MLN in Series A round and is scrambling now to raise it via senior debt offering (snapshot below) it appears total raised was far less 🤔. Once again can CEO clarify ? pic.twitter.com/hgRAT0Zj9E
— BTCKING555 (@btcking555) August 20, 2020
According to the insider, the company is currently trying to raise the money by taking on debt with a senior repayment priority.
In mid-August Layer1 was accused of patent infringement for adopting a model for regulating electricity demand.
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