$1 Billion Chinese Blockchain Fund Denies Report of Government Pull-Out | Crypto

A $1 billion Chinese blockchain fund launched in April has denied a report that local government will pull out its originally planned funding support following a recently leaked recording involving a former partner of the fund.

A news report from China Business Journal on Thursday said the Hangzhou city government has required Xiong'An (or Grandshores) Blockchain Fund to stop promoting itself by using the name as a government-backed fund.

The report said the local government has decided it will not pour in new capital anymore, making a notable withdrawal from the original plan made in April where the government agreed to back 30 percent of the fund. So far the government has allocated 30 million yuan (or around $4 million) for the project, the report said.

Citing an anonymous source close to Li Xiaolai, a well-known Chinese crypto investor and a former managing partner of the fund, the report indicated the government's decision came after a recording of Li's private meeting was leaked early this month which brought negative impact on the company and the government.

Yet, in the report, Li responded that the fund “is not suspended.” And he further clarified to CoinDesk that by saying that he means the government has neither suspended Grandshores' operations nor pulled out its future funding support.

Hours later on Thursday night, Grandshores Blockchain Fund also issued a statement to deny the report, saying they have not yet received any kind of suspension notice from the government.

As previously reported by CoinDesk, Li resigned from his role as the fund's managing partner on July 9 following the leak of a recording where he took aim at various individuals and companies in the industry with vulgar languages.

Dominoes image via Shutterstock

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