ChainCatcher report, according to Reuters citing sources, executives at Chinese AI company Moonshot are engaged in settlement negotiations with a shareholder ahead of its planned Hong Kong IPO. The shareholder is seeking compensation for alleged misconduct; these negotiations had not been previously reported, and it remains unclear whether a settlement is imminent. In a letter dated March 11, 2026, sent to Moonshot investors by Recurrent.ai and certain of its investors, it was alleged that CEO Yang Zhilin and CTO Zhang Yutao made false statements to Recurrent’s investors and enriched themselves at Recurrent’s expense. Company records show that the two co-founded Recurrent.ai in 2016 and founded Moonshot in 2023; they remain directors of Recurrent’s holding company. The dispute has been under arbitration in Hong Kong since 2024. The letter also claims that critical model data servers were transferred, certain data was deleted, and that Moonshot was established without board authorization. Reuters stated it could not independently verify these allegations. Sources said Recurrent received 9.5% of Moonshot’s original shares and is now seeking compensation equivalent to 10.5% of those original shares; based on Moonshot’s $30 billion valuation at its June funding round, this portion could be worth over $700 million. Reuters reported in September that Moonshot had secretly filed for a Hong Kong IPO. One source indicated the dispute is not expected to jeopardize the listing, but if unresolved, it could raise governance, equity, and disclosure concerns. Yang Zhilin has previously denied the allegations, with his legal team asserting that the case lacks legal and factual basis.
Moonshot executives negotiate shareholder dispute ahead of Hong Kong IPO
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Summary
Moonshot executives are in settlement discussions with a shareholder over legal disputes ahead of its Hong Kong IPO. The shareholder alleges misconduct and is seeking 10.5% in compensation, potentially worth over $700 million. Recurrent.ai, which holds a 9.5% stake, accuses CEO Yang Zhilin and CTO Zhang Yutao of making false statements and manipulating data. The case, governed by CFT regulations, involves unauthorized server transfers and deletions. The dispute, currently under arbitration in Hong Kong, dates back to 2024. Moonshot filed a confidential IPO application in September 2026, amid ongoing scrutiny of liquidity and crypto market conditions.
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