Bitcoin* Mining Company Subject of Involuntary Chapter 7 Filing

Written by CFB Blogger. Posted in Blog

HashFast, an ASIC mining hardware manufacturer, which has gotten embroiled in legal trouble after failing to deliver to customers, has been served with an involuntary Chapter 7 bankruptcy petition, filed by five customers against the mining hardware manufacturer in the U.S Bankruptcy Court in Northern California. Plaintiffs in the bankruptcy case are: UBE Enterprises, Timothy Lam, Edward Hammond, Grant Pederson and Koi Systems. Sid M. Zagaeski, writing for Coin Report, reports that at the end of March, a Texas court issued a temporary restraining order to freeze HashFast’s Bitcoin wallets. This was done to salvage over $330,000 in payments that were allegedly never fulfilled by the company. HashFast’s director of marketing, Amy Abascal told the newsite Ars, “’There has been a motion filed to put us into involuntary bankruptcy. We are evaluating our options and preparing our response. We’ll provide information as it’s available.’” Under Chapter 7 bankruptcy, HashFast will need to prove its solvency by the end of July to comply with the complaint. If it cannot do so, it will be forced to take part in the Chapter 7 bankruptcy. If this does happen, HashFast can file for Chapter 11 bankruptcy protection and so take the case from the claimants, according to one attorney. If you are considering filing Chapter 7 or Chapter 13 bankruptcy due to extreme financial distress, please call us right away. The Client First Bankruptcy attorneys are among the most knowledgeable consumer bankruptcy attorneys in the U.S., representing thousands of clients in consumer bankruptcy matters. Call us toll-free at 800-383-6004 Monday thru Friday from 8:30 a.m. – 6:00 p.m. Central Time. For vital information on filing your personal Chapter 7 or Chapter 13 bankruptcy anytime, log onto our easy-to-navigate, interactive website at www.clientfirstbankruptcy.com. * From Wikipedia – “Bitcoin is a payment system introduced as open-source software in 2009 by developer Satoshi Nakamoto. The payments in the system are recorded in a public ledger using its own unit of account, which is also called bitcoin. Payments work peer-to-peer without a central repository or single administrator, which has led the US Treasury to call bitcoin a decentralized virtual currency. Although its status as a currency is disputed, media reports often refer to bitcoin as a cryptocurrency or digital currency. Bitcoins are created as a reward for payment processing work in which users offer their computing power to verify and record payments into the public ledger. Called mining, individuals or companies engage in this activity in exchange for transaction fees and newly created bitcoins. Besides mining, bitcoins can be obtained in exchange for fiat money, products, and services. Users can send and receive bitcoins electronically for an optional transaction fee using wallet software on a personal computer, mobile device, or a web application.”