HashFast’s $1 Million Question: Is Bitcoin a Currency or Commodity?

Andrew “Drew” Hinkes is Counsel at Berger Singerman LLP, a business law firm in Florida. Hinkes represents companies and entrepreneurs in state and federal commercial litigation matters, representation of court-appointed fiduciaries, and electronic discovery issues.

Drew is also frequently published and cited for his work on virtual currencies, smart contracts, distributed ledger-based technologies, computer data security and data breaches and technology regulation.


Although multiple regulators and judges have attempted to legally classify bitcoin and other cryptocurrencies, a Bankruptcy Court in San Francisco has an opportunity to determine whether bitcoin should be treated like a commodity or like US currency.

In HashFast Technologies LLC v Lowe, the Bankruptcy Court is being asked to determine whether the recipient of a transfer of bitcoins has to return (a) the actual bitcoins transferred or their current value (treat them as property), or (b) the value of the bitcoins on the day they were transferred (treat them as currency).

In HashFast, the debtor, Hashfast Technologies LLC, transferred to Lowe 3,000 BTC, which were worth $363,861.43 at the time. Today, they are worth approximately $1.3m. The Trustee for the debtor sued to “clawback” the transfer into the bankruptcy estate

Read more ... source: TheBitcoinNews

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