Blockchain Server Firm Canaan Hit With Securities Suit Over IPO

Canaan Inc. misled investors about its financial health and bitcoin clientele ahead of its 2019 initial public offering, a would-be class suit filed in Oregon federal district court says.

The Beijing-based company, which bills itself as the worldwide leader in blockchain server production, left out a related-party transaction from its pre-IPO registration statement, according to the complaint filed in the U.S. District Court for the District of Oregon Wednesday.

Canaan also allegedly failed to tell investors that several of its largest Chinese clients weren’t in the bitcoin mining industry and were thus unlikely to be repeat customers, the complaint says. ...