Bitcoin Mining Company HashFast Bankruptcy Auction Announced

Journalist:
November 10, 2014

HashFast, a mining company which once boasted that its hardware is “… the fastest Bitcoin Mining ASIC in the world. Period,” was granted permission last Wednesday to liquidate its remaining assets. Officially, HashFast is bankrupt and owes investors from around the world a sum close to $40M.

The ruling could be one of the most sardonic “wins” for a bitcoin company in court thus far. In the months leading up to the California judge’s ruling, HashFast was beset by a number of legal accusations. The list includes breach of contract, fraud, and an involuntary bankruptcy petition. For HashFast bankruptcy may be the best chance of recovering investors’ money.

Also read: KnCMiner Ditches Customers in Favor of Mining Bitcoin and Litecoin for Themselves

What Made HashFast a Sinking Ship?

“2 More Weeks” happened to HashFast. They accepted pre-orders in Bitcoin when the price was high. Products did not ship on time or fast enough. And, just like Butterfly Labs, customers started calling for their refunds. Unrestrained ambition gets another Bitcoin notch on its belt.

Simon Barber, CEO of HashFast, first announced his plans for an ASIC project on the bitcointalk forums in July 2013. Barber made a number of promises and miscommunications. From credit card processing that never happened, failing to refund customers in bitcoins, to evidence that supports directly misleading consumers on shipping dates the HashFast story is so rife with drama it requires popcorn.

The full timeline of events is compiled and maintained at hashfast.org/Timeline for anyone interested.

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What Comes Next?

December 4th is the auction date. Any person wishing to participate in the auction must become a Qualified Bidder. There are a few paragraphs of legalese covering the requirements. In all, 10% down payment. Proof you can pay your bid. Submit everything by December 2nd.

In an interview with Ars Technica Ray Gallo, a lawyer representing investors, shared his fears:

“I think the company is out of money, so I think the final employees resigned. Yes, somebody could buy claims against Barber. I’m not sure those have any value though.”

What do you think? Comment below!

Images from Shutterstock.

Last modified (UTC): November 10, 2014 06:15