Crypto Tycoon Resigns From Blockchain Fund After Alleged Defamation

Li Xiaolai, a noted cryptocurrency investor and early bitcoin evangelist in China, has resigned from his role as managing partner of the $1 billion Hangzhou Xiong'An Blockchain Fund after alleged defamatory comments were made against him.

The sudden departure comes as the result of an ongoing internet feud between Li and Chen Weixing, a venture capitalist who in recent months has made a series of hostile comments in public against the investor.

Li announced his resignation on his Weibo account on Monday night, saying he made the decision in order to preserve the reputation of the government-backed blockchain investment fund launched in April of this year.

"The series of defamations from Chen Weixing against myself has brought material and negative impacts on the reputation of Xiong'An Blockchain Fund. To let the Hangzhou government continue its push for blockchain development, I will resign from my role as a managing partner."

As previously reported by CoinDesk, back in June, Chen openly described Li as a "Fraud" and a "Tumor" of the cryptocurrency industry.

Chen went public again following the audio leak, accusing Li of being a "Foul-mouthed liar." He further questioned the legality of the Xiong'An Blockchain Fund, asking whether the local government has indeed allocated the apparently promised 30 percent of the funds.

Last Friday, Li announced through his WeChat channel that he had filed a lawsuit with a local court in Hangzhou accusing Chen of defamation.

He went on to say that Chen has no knowledge of blockchain and can only make his name by defaming others.

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