It has been over an year since the Bitcoin mining outfit HashFast Technologies announced bankruptcy, but the company is still continuing to stay at the nucleus of legal troubles.
The Bitcoin equipment manufacturer, which once rose to fame for its over-the-top advertising campaigns, was later beset by a number of legal allegations, including breach of contract and fraud. As widely reported, HashFast had launched a fake pre-order scheme, in which it had promised to ship its customers the fastest Bitcoin mining machines within two weeks. But in reality, the company’s “in stock” claim was a farce.
“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),” a plaintiff’s 22-page complaint says, while claiming that the company’s owners wanted to utilize the collected funds to pay vendors and other third parties, who would have ultimately produced the machines.
The plaintiff who filed the aforementioned complain is Pete Morici. He claims to have paid HashFast around $11,000 for their specialized Bitcoin mining hardware, “BabyJets”. He also claims that — as