Court Approves Fraud Claims Against HashFast

A district court judge has approved claims alleging fraud in a lawsuit against bankrupt mining equipment maker HashFast.

A district court judge has approved claims alleging fraud in a lawsuit against bankrupt mining equipment maker HashFast.

Last year, the company had been the subject of bankruptcy proceedings, at times taking interesting twists. According to court documents, it owed $40 million to creditors. Like many of its peers in the embattled industry, it faced mounting complaints over delayed/unfulfilled pre-orders/refunds. The exact causes for the company’s collapse remain unclear; it had previously indicated that it was a victim of a string of mishaps and unreliable partners.

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Plaintiff Pete Morici sued the company in January last year, alleging that he purchased two ‘Baby Jets’ for $11,200 but never received his order or a satisfactory refund.

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Judge Edward Davila rejected a motion to dismiss the suit and ruled that HashFast had contravened the Unfair Competition Law (UCL), which forbids “acts or practices which are unlawful, or unfair or fraudulent.” However, he approved a motion to dismiss fraud charges stemming from allegations that Baby Jets were not in stock.

HashFast’s website is still live, advertising its (grossly outdated) products: “Still, the Fastest Bitcoin Mining ASIC in the World. Period. Low power consumption and up to 750 GH/s.”

The proceedings are taking place at the United States District Court, Northern District of California, San Jose Division.

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