On Monday, Li Xiaolai, a well-known Chinese cryptocurrency investor, announced his resignation as managing partner of the Hangzhou Xiong'an Blockchain Fund. The news comes after Li was allegedly defamed by venture capitalist Chen Weixing. In explaining his decision to resign, Li mentioned on the popular Chinese microblogging website Weibo that he wanted to preserve the organization's reputation, as it "has been negatively affected" by the drama. The post further stated:
"In order to let the Hangzhou Municipal Government continue to promote the blockchain industry more quickly and smoothly, and drive China's real economy, [Li] announced that he resigned as the managing partner of Xiong'an Fund."
Apparently, Li and Chen have been involved in an internet war, which can be seen from Li's post history. In Li's most recent Weibo post from July 10, he called Chen "schizophrenic" and "a blatant liar."
To give the feud context: Chen initially accused Li of owing a debt. Li had raised a 30,000 BTC fund that was supposed to mature in September 2017, but it was delayed by one year. Chen alleges that Li gambled the money away on the bitcoin betting website Just-Dice. Li responded to this and Chen's other negative comments through a detailed blog post on June 14, which asserted that Chen did not have evidence to support his claims.
Their exchange eventually resulted in Li suing Chen for defamation last week, which Chen responded to by saying it was an opportunity for him to take on Li in court. Chen urged supposed victims of Li's actions to join the cause.
As of press, the Hangzhou Xiong'an Blockchain Fund has not addressed Li's resignation. Only time will tell how this crypto scandal will affect Chen, Li, and the blockchain fund.
Translations by Google.