Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Bitcoin Mining Manufacturer Files for Bankruptcy
Authors: Joel R. Glucksman, Donald Scarinci
Date: June 17, 2014
Key Contacts
Donald Scarinci
Firm Managing Partner
201-896-4100 dscarinci@sh-law.comBack
HashFast, a manufacturer of bitcoin mining equipment, has filed for protection under Chapter 11 of the bankruptcy law, according to CoinDesk. A creditor, Liquidbits, had filed an involuntary Chapter 7 bankruptcy against HashFast, forcing it to request a conversion to a voluntary Chapter 11 reorganization proceeding.
U.S. Bankruptcy Judge Dennis Montali granted HashFast’s request June 7, after coming close to appointing a Chapter 7 trustee at creditor LiquidBits’ request, the news source reported. The latter firm alleged that HashFast failed to make good on a $6 million order. Just one month ago, the company laid off half of its workforce and issued a public denial that it was filing for bankruptcy.
In a blog post, HashFast explained that it would be entering Chapter 11, and that it intends to reorganize in order to provide more value to its creditors than it would in a liquidation. Eduardo DeCastro, the CEO of the company, will be stepping down. Monica Hushen, HashFast CTO, will be handling business operations and bankruptcy matters. The company also announced that it had retained Katten Muchin Rosenman LLP as its bankruptcy council.
According to CryptoCoinsNews, HashFast’s troubles began when its customers began demanding refunds, as the company’s hardware began lagging behind that of the competition. Bitcoin mining takes large amounts of processing power and electricity, and returns are cut in half regularly as a part of the currency’s algorithm, which mandates an asymptotical approach to 21 million bitcoins. This means that mining remains economically viable only if the currency continues to appreciate in value or the cost of mining technology continues to fall.
HashFast has cut its costs and intends to restructure to a more viable business strategy. Bitcoin mining can still be viable on a large scale, but it is yet to be seen whether HashFast will be.
If you have any questions about this post or would like to discuss your company’s creditors’ rights and bankruptcy matters , please contact me, Joel R. Glucksman at www.ScarinciHollenbeck.com.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Fort Monmouth Redevelopment and the Transformation of Monmouth County Real Estate
The Fort Monmouth redevelopment has entered its execution phase, and it is repositioning the broader Monmouth County real estate market. When Netflix and the Fort Monmouth Economic Revitalization Authority closed on the 292-acre Mega Parcel in December 2025, the transaction did more than hand over a deed. It marked the moment Fort Monmouth stopped being […]
Author: Donald M. Pepe
Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand
Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]
Author: Donald M. Pepe
Real Estate Litigation Explained: Top 5 Disputes and How to Avoid Them
The five most common real estate disputes are breach of contract claims, landlord-tenant conflicts, zoning and land use disagreements, construction claims, and boundary disputes. Understanding why each arises, and taking preventive steps early, can help property owners, tenants, developers, and investors avoid costly litigation. Key Takeaways: Real estate transactions are complex endeavors involving numerous parties […]
Author: Paul Grossman
When a Child Turns 18: The Gap in Your Family’s Estate Plan
Once a child turns 18, parents lose the automatic legal authority to make medical and financial decisions on their behalf, even if the child still lives at home or remains on the family’s insurance. Three documents close that gap: a durable power of attorney, a health care proxy or directive, and a HIPAA authorization. For […]
Author: George McGowan
Business Mediation: An Overview and Practical Tips
Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]
Author: Paul Grossman
Top 5 Causes Leading to Construction Defect Litigation
The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
Author: Paul Grossman
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.