The $25 million dispute between changtel and core

Source: financial union news agency

Original title: "contract dispute between changdian and core: the rise and fall of bitcoin leads to rashomon"

2017 has been a wild year for the virtual digital currency bitcoin, which hit an all-time high of $20,089 after topping $20,000 in late December. From $1, 000 to $20, 000, many people's dreams come true in a year, only to be disillusioned. In just two months, the "sky high fall" reached $8,000, and just four months later, in April 2018, bitcoin fell back to more than $6,000 again.

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The ups and downs of bitcoin are affecting the opening and closing of the bitcoin industry. Recently, the chip sealed test factory director in the release of the annual report, disclosed the mining movement of the company (INNOSILICON) contract dispute. The business dispute began after the bitcoin frenzy.

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$25 million dispute

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In August 2017, the price of bitcoin rose from $1,000 at the beginning of the year to $4,000, which was a boom. According to changdian's announcement, which came in January, the company began commissioning STATS CHIPPAC PTE, a subsidiary of changdian. LTD. (hereinafter referred to as "star ke jinpeng") to provide chip packaging services for core mobile's bitcoin mining machine.

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By March 2018, the external environment had undergone a major change. On the one hand, the price of bitcoin experienced a precipitous decline in a few months, and the business of bitcoin mining was also cooled.

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The financial news agency previously reported that in 2017, the bitcoin boom led to the mining machine business in huaqiangbei, "the first electronic street in China". Major domestic mining machine manufacturers such as bitmainland, jia nan yunzhi and xin dong technology all ship goods in huaqiangbei. At the peak, when one of the mainstream models white card B (can dig BTC and other currencies), the official website price is only 30,000, the market price was once Fried to 140,000 yuan.

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Then not only did sentiment in the global digital currency market take a turn for the worse. The office of the leading group for the Internet financial risk rectification task force issued a document to local companies to withdraw from the "mining" business.

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On Feb. 7, 2018, bitcoin fell to a low of $6,849.42. The mine machine shipment decreases sharply, the mine machine manufacturer's cold wave arrival. According to previous data from bitmainland's pre-ipo, its revenue in the first quarter of 2018 was $1.896 billion. Revenue in the second quarter narrowed to $778 million, down more than half from the previous quarter.

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At this time, the dispute between changdian technology and core motion company has been generated.

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The company believes that in March 2018, the company found that the chip could not work properly due to the poor quality of the long battery packaging, resulting in material and other losses of $25 million.

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But changdian science and technology thinks, core moves a company to encounter when mining machine market management difficulty to delay payment to put forward so-called "quality problem".

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"By the end of March 2018, smic had paid about $8 million for the package and test service of starcore, which increased to $13.25 million by June 2018. Smic refused to pay the full $13.25 million for the unqualified chip."

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Changdian technology: avoid communication, seek abnormal business reconciliation

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After receiving a huge claim from the company, changdian issued the latest statement, saying that the company made up unreasonable quality reasons to pressure changdian and refused to pay a large amount of unpaid goods for a long time, which was typical of commercial fraud and blackmail.

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On the one hand, smic is registered in Samoa and opens a settlement account with HSBC in Hong Kong. Transfer the business entity to Hong Kong hengtong and assign Hong Kong hengtong to perform the payment obligation, but Hong Kong hengtong has never paid any payment;

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On the other hand, after raising the "quality issue", core motion company not only refused to stop production and clarify the quality issue, but also expressed the hope of speeding up production and shipment, resulting in the payment arrears of more than 13 million us dollars.

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The person in charge of changchang science and technology took the initiative to visit the assembly and production site of core motion company and its products for many times, verified the package samples for many times and gave the quality verification report, which indicated that the processing link was not responsible, core motion company refused to communicate. In the avoidance at the same time, changdian technology also pointed out that the core technology through a variety of personal channels to find relationships, seeking and the company's "abnormal business reconciliation."

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In response, changdian technology has taken measures to stop the supply of goods to the company in 2018 and has set aside bad debt reserves according to law.

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Core motion technology: statement "false"

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After the announcement, the company also issued a clarification notice, saying that the company's solemn statement is "not true."

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"After finding the serious problem, I sent the test report to changdian and asked changdian for compensation for many times. The relevant staff of changdian also admitted the reliability problem of packaging at the first time."

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TSMC and samsung electronics are responsible for more than 90 per cent of the market for chips, although market news in 2018 said both had been told by miners to cut orders by nearly 50 per cent. But the company said its orders were unaffected. "In March 2018, the company's products in a number of packaging plants did not reduce orders, but continued to climb."

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Core action thinks the issue of shipment quantity is long power technology "conjecture". "In March 2018, the company paid more for packaging to other packaging plants than it paid for the dispute."

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"In the industry, after the bitcoin market fell, many mining chips were hit hard." However, industry insiders said, based on the existing information is not yet able to determine whether commercial fraud or product quality problems.

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At present, both sides of the contract dispute has entered legal proceedings.

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