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.

On June 2, 2020, the Court issued an Order appointing Lead Plaintiffs and Counsel. This case was transferred to the Southern District of New York on August 31. Lead Plaintiff filed an amended Complaint on October 5 and corrected the amended Complaint on October 7.