A federal judge has approved the auction of most of HashFast’s remaining assets. According to court documents, the company owes $40 million to creditors. The auction is to be held at Embarcadero Center in San Francisco on December 4.
The company entered Chapter 11 bankruptcy in June, days after nearly getting forced into involuntary bankruptcy. In an infamous chain of events since repeated with other mining hardware manufacturers, most recently Butterfly Labs, HashFast faced mounting complaints over delayed/unfulfilled pre-orders/refunds.
Last week, Bankruptcy Judge Dennis Montali approved the company’s request to sell off thousands of chips, wafers, mining boards, cooling fans and older miners. Bidders will also be able to buy claims against the company’s leadership. In terms of bitcoin holdings, the company reportedly only has five (worth approx. $1725).
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Earlier this year, CEO Eduardo deCastro told Ars Technica:
“The only thing that is holding us back is that we are as poor as church mice. We are cash poor and inventory rich. We have lots of inventory and no cash.”
One of the complicating factors during the one-year saga has been the company’s acceptance of bitcoins for pre-orders. This complicated the refunds process, which was further aggravated by miscommunication.
The company’s website is still live and advertising its latest products.