According to the Complaint, Canaan purports to provide supercomputing solutions through proprietary high-performance computing application-specific integrated circuits ("ASICs"), primarily for the purposes of Bitcoin mining.

The Complaint alleges that Defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) the purported “strategic cooperation” was actually a transaction with a related party; (2) the Company’s financial health was worse than what was actually reported; (3) the Company had recently removed numerous distributors from its website just prior to the IPO, many of which were small or suspicious businesses; and (4) several of the Company’s largest Chinese clients in prior years were clients who were not in the Bitcoin mining industry and, thus, would likely not be repeat customers.