China Business Journal had recently claimed that the government at Hangzhou is ceasing the funding process for the project spearheaded by the Xiongan Blockchain Fund. However, the block fund in question as well Li Xiolai have absolutely rubbished the claims that the state authorities are withdrawing financial support for this particular project. The China Business Journal had claimed that the city government has refused to continue the financial support in view of the fact that the Xiongan Blockchain Fund was referring to the project as being backed by the government.
According to the report that came out in the Journal, the city authorities had also direct the Blockchain Fund to refrain from continuing the use of the government's reference in publicizing their solutions and products as a part of the project. We had also gathered from the published article that the government would reportedly withdraw all the contributions it had so far made to the fund, which added up to roughly about 30% of the project's total revenue. The anonymous source cited in the report claimed that the government had been promoted to move forward with such a drastic step in the wake of certain controversial comments that had been made by Li Xiaolai, an ex managing partner of the Blockchain Fund in a private meeting made public via a leaked recorded tape.
The China Business Journal in its report had implied that Li had used radical and controversial language to express negative and hostile remarks about several noteworthy members of the blockchain industry of China. In the aftermath of this, a notable crypto honcho, Mr. Chen Weixing, went on to lash out at Li on the microblogging site Twitter. As a result of the massive backlash that came his way Li announced that he would be resigning from the post of Managing Partner on 9th July, 2018.
He had stated that the allegations that Weixing had raised against him on Twitter had led to losses in goodwill as well as profits for the Blockchain Fund, while resigning from his role as a top executive of the firm.
Weixing had called the Blockchain Fund's legitimacy to question and also the existence of the funding from the government that was reportedly valued at around $4 million. Even though the validity of the article is still not certain, representatives of both the fund as well as the former executive have denied the truth of the report completely. Although Li is no longer a part of the firm, he continues to hold about 49% of the firm's stake, being the primary shareholder.