Bitcoin ‘BabyJet’ Claims Survive Dismissal Bid

     SAN JOSE, Calif. (CN) – A manufacturer specializing in bitcoin computer hardware cannot duck claims it lured consumers into paying for equipment that did not yet exist, a federal judge has ruled.
     Plaintiff Pete Morici, a bitcoin “miner,” says he paid the equivalent of about $11,000 for specialized hardware, called “BabyJets,” used to mine the digital currency.
     He says the defendants knew they could not meet the promised delivery dates but lied about it, hoping to raise enough money from online sales to complete development and manufacturing of the hardware.
     Morici sued HashFast Technologies, HashFast LLC, CEO Eduardo deCastro and chief technology officer Simon Barber, alleging fraud and breach of contract.
     “HashFast was capitalized with a total of $641,643, a number that was totally inadequate to undertake production and development of bitcoin mining equipment (which would cost several millions of dollars),” according to Morici’s 22-page complaint. “However, Barber and deCastro sought to solicit customer orders for bitcoin equipment, and using the funds received from customers, pay vendors and other third parties who would ultimately produce the machines. Barber and deCastro caused HashFast to engage in an extensive marketing campaign promising delivery of BabyJet machines by dates certain, knowing that

Read more ... source: Bitcoin Warrior