Moore Threads’ blockbuster IPO clouded by decade-old crypto debt dispute

The successful stock market debut of Moore Threads, a company that’s being touted as China’s answer to Nvidia, has been overshadowed by resurfaced allegations that link one of its co-founders to an unpaid cryptocurrency debt that has been lingering for roughly a decade.

Shares in the GPU maker skyrocketed to as much as 470% on Thursday following its initial public offering (IPO) on the Shanghai Stock Exchange, valuing the company at around RMB 282 billion ($39.9 billion).

However, as the success was being celebrated online, a social media post revived claims that Moore Threads’ co-founder Li Feng borrowed 1,500 Bitcoins from Mingxing “Star” Xu, founder and CEO of cryptocurrency exchange OKX, and never repaid the loan.

Crypto past with OKX founder resurfaces

In an X post, AB Kuai.Dong referenced Feng’s involvement in a 2017 initial coin offering that raised 5,000 ETH alongside controversial angel investor Xue Manzi. Feng allegedly dismissed the Bitcoin loan, stating, “It was just that Xu Mingxing’s investment in me had failed.”

Xu responded to the post with a conciliatory message, writing, “People cannot always remain in the shadow of negative history. Face the future and contribute more positive energy.” He added, “Let the legal system handle the debt issue,” and offered blessings to every entrepreneur.

Feng reportedly partnered with Xue Manzi and Li Xiaolai in 2017 to launch Malego Coin, which was later renamed Alpaca Coin MGD.

The project reportedly raised approximately 5,000 ETH, but it was around this period that China banned ICOs, allowing regulators to crack down on what they viewed as speculative excess and potential fraud in the cryptocurrency sector.

The Bitcoin loan dispute appears separate from the ICO controversy. According to sources familiar with the matter, the original loan agreement was dated December 17, 2014, with an expiry of December 16, 2016. It was subsequently renewed on March 30, 2017, with guarantees provided by Hu Zhibin.

Xu previously posted publicly seeking a resolution and pursued legal action in both China and the United States. However, ambiguities due to the classification and legal status of cryptocurrencies at that time meant he never got a meaningful resolution.

Moore Threads touted as China’s semiconductor champion

Moore Threads, founded in 2020 by James Zhang Jianzhong, a former head of Nvidia’s China vice president who spent 14 years at the American chip giant, has positioned itself as a homegrown alternative to foreign GPU suppliers.

The company’s IPO raised RMB 8 billion, around $1.1 billion. It also received regulatory approval in just 88 days, which is significantly faster than the average 470-day timeline for Chinese listings.

Major investors include ByteDance, Tencent, Sequoia China, and DeepSeek founder Liang Wenfeng, among others.

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