HashFast announces specs for new ASIC: 400GH/s

[Entropy-uc]

Just emailed Gallo's firm with my information and was wondering if he has been good to work with so far?  The retainer of 40% plus fees seems like there really won't be anything left for us in the end.

I've been working on and off with him for months. It's all talk until something actually happens.

And as far as the 40% retainer.. you think you'll receive ANYTHING from hashfast? This is def the best move to make.

The only way it would be worthwhile is if Gallo guarantees that he will pursue personal claims against the owners and officers of Hashfast.  Without that, you are just throwing money away compared to what you would recover just riding out the bankruptcy.

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[perezoso]

And as far as the 40% retainer.. you think you'll receive ANYTHING from hashfast? This is def the best move to make.

Yes, but after about 3pm today, US west coast time, the old Hashfast will likely cease to exist. 

In Eddie's place there will be a court-appointed manager.  That manager's job will be to fairly allocate Hashfast's remaining assets among its creditors.  (S)He will be responsible to the court, not out for personal gain or responsible to shadowy porn investors, or whatever.

It's your own business, and of course the possibility of upsets exists, but paying 40% of your proceeds to a fat lawyer doesn't seem to make sense.

It's like this, for example:

For Batch 1 Babyjet with unpaid MPP (or insert some other item here, say, for every Batch 3 Sierra), each customer will receive a set amount.  Let's say it's $10.  If you don't hire Gallo, you will basically get your $10 back.  If you do hire Gallo, you will get $6 back.

Yeah, it's more complicated than that, but that's the basic jist.

[armyof1ne]

Just emailed Gallo's firm with my information and was wondering if he has been good to work with so far?  The retainer of 40% plus fees seems like there really won't be anything left for us in the end.

Someone gets it.

[btchedge]

Maybe everyone with a legitimate interest in the outcome should settle down and resist the urge to speculate about the intentions of any of the parties who have a legal team involved at this point. Casting aspersions won't do anything to further an equitable outcome.

Regardless of their motivation or intent, the intelligence gathered and acted upon by LiquidBits seems to have resulted in preserving the bulk of the remaining assets of Hashfast. Who knows where that inventory would be right now if action was not taken?

My guess is that the LB team is fully aware of how bankruptcy works and will put forth a plan that they could reasonably expect a the other creditors and the trustee to accept. It's not like a trustee is going to just hand over all the assets to a single creditor. Koi and others already have a seat at the table and the creditor list will continue to grow.

As fucked up as things are, this current turn of events might be the least shitty of many potential outcomes. I am actually more optimistic about Hashfast Hashfast 2.0 than I have been in a long time.

I sure hope someone will go down to the hearing and report back with a blow by blow.

[cedivad]

If someone needs directions:



I don't know if someone other than their lawyers will be there today, but it would be positive if you guys spent some hours of the afternoon together, creditors and HF. What could go wrong?

Meanwhile, pepperming:

[perezoso]

Let's see.... it should have started by now....

[nwfella]

Cue fat lady!

[perezoso]

Cue fat lady!

[smoothie]

http://www.coindesk.com/hashfast-just-one-hearing-away-involuntary-bankruptcy/ 

[duncwa]

Hearing extended until 930am Wednesday.  I'm here now.  $2600 statutory limit for us solo purchasers.  Not sure what this means.  Something about 503b 9.  #duncwaconfused.  Motion by creditors denied.

[perezoso]

Hearing extended until 930am Wednesday.  I'm here now.  $2600 statutory limit for us solo purchasers.  Not sure what this means.  Something about 503b 9.  #duncwaconfused.  Motion by creditors denied.

503(b)(9), if that's what was mentioned, is a section of the code apparently intended to protect suppliers of goods and services to firms that are going belly up.  Totally armchair here, I know as much about bankruptcy proceedings as I do about speaking Thai, but it suggests to me that there are unpaid suppliers of materials/services to Hashfast that are pressing claim.  That or the judge is creating a time window during which any such suppliers could present themselves.

[cedivad]

Motion denied? The emergency one to appoint a trustee? Why? Denied or delayed to Wednesday?

It would be great if someone spent some lines once a hearing to update us

In other words they got another week to hide what can be hidden and to try to find the invoices for the millions of dollars unaccounted for, great!

[perezoso]

Motion denied? The one to appoint a trustee asap? Why?

There's no way they're coming out of this alive.  I'm sure its a technical delay, maybe to allow additional claims to be presented, or some legal prerequisite to be satisfied, whatever.  Monday is a holiday here, so this is less than 1.5 working days' delay.

Maybe entropy will come by in a while and update us.

[pmorici]

Hearing extended until 930am Wednesday.  I'm here now.  $2600 statutory limit for us solo purchasers.  Not sure what this means.  Something about 503b 9.  #duncwaconfused.  Motion by creditors denied.

Sounds like they are talking about the priority of the people who are owed money by HF.  As a consumer there appears to be a provision in bankruptcy law to give you priority on a pre-payment or deposit of up to $2,600 that doesn't mean you can recover the rest if you are owed more but you just wouldn't get preference on the remainder.

Bankruptcy Code Section 507(a)(7) establishes a priority for unsecured claims of individuals arising from Customer Deposits towards the purchase of goods that were not delivered up to a maximum of $2,600.  The remaining portion of the un-refunded deposit would become a general unsecured claim. Consumers owed deposits are only paid after all of the secured creditors and administrative expenses of the bankruptcy (such as bankruptcy lawyers’ fees) are paid.  As priority creditors, holders of deposits would be paid up to $2,600 before any general unsecured obligations of the retailer are satisfied.

http://blog.bdo.com/index.php/2011/06/23/treatment-of-customer-deposits-after-a-retailer-files-for-bankruptcy/

503b9 is about suppliers who are owed money by the bankrupt company and given them preference under certain circumstances.
http://www.burbageweddell.com/bankruptcy-creditor-rights-overview/section-503b9-administrative-expense-claims/

The real question is what the heck did Hashfast _do_ with all that money people gave them to build these chip & machines some large number of which were never delivered.

[duncwa]

That was an experience!!  I think I'll go back Wednesday.  I sort of felt the pain of the judge trying to wrap his mind around Bitcoin.  I'm all in on cryptocurrencies and remember my "what huh" moment when I first heard about BTC.    I wanted to volunteer my services to help make the court more familiar with the technology and protocol.   

[pmorici]

Motion denied? The emergency one to appoint a trustee? Why? Denied or delayed to Wednesday?

It would be great if someone spent some lines once a hearing to update us

Just got an update from someone who was listening in.  Hashfast told the court that they would voluntarily consent to a conversion to Chapter 11 bankruptcy (vs. the Chapter 7 that people are trying to force them into currently)  The judge was hesitant to appoint a trustee because they wouldn't have any authority if/once the bankruptcy was converted to chapter 11.  He didn't deny the motion he just delayed making a decision on it until Wednesday when he was perhaps expecting a more concrete answer on if HF really did intend to submit to Chapter 11.  The judge also adopt the TRO that liquidbits(?) got from arbitration that disallows HF from doing anything shady with their assets.

[duncwa]

Motion denied? The emergency one to appoint a trustee? Why? Denied or delayed to Wednesday?

It would be great if someone spent some lines once a hearing to update us

Just got an update from someone who was listening in.  Hashfast told the court that they would voluntarily consent to a conversion to Chapter 11 bankruptcy (vs. the Chapter 7 that people are trying to force them into currently)  The judge was hesitant to appoint a trustee because they wouldn't have any authority if/once the bankruptcy was converted to chapter 11.  He didn't deny the motion he just delayed making a decision on it until Wednesday when he was perhaps expecting a more concrete answer on if HF really did intend to submit to Chapter 11.  The judge also adopt the TRO that liquidbits(?) got from arbitration that disallows HF from doing anything shady with their assets.

I'll be the first to admit that the legal process was beyond my comprehension.  But, regardless, I enjoyed the experience.

[perezoso]

I'll be the first to admit that the legal process was beyond my comprehension.  But, regardless, I enjoyed the experience.

You could still cast a voodoo spell on Eddie if he shows up on Wednesday.  Some things beyond our understanding might be helpful.

Just got an update from someone who was listening in.  Hashfast told the court that they would voluntarily consent to a conversion to Chapter 11 bankruptcy (vs. the Chapter 7 that people are trying to force them into currently)  The judge was hesitant to appoint a trustee because they wouldn't have any authority if/once the bankruptcy was converted to chapter 11.  He didn't deny the motion he just delayed making a decision on it until Wednesday when he was perhaps expecting a more concrete answer on if HF really did intend to submit to Chapter 11.  The judge also adopt the TRO that liquidbits(?) got from arbitration that disallows HF from doing anything shady with their assets.

Somebody might be giving them money.  If their finances were such a wreck, and they have no resources to convert the chips into hashing machines, I don't see how they could present a credible Chapter 11 plan without an infusion of cash.

[fredthedog]

Eduardo is out as CEO. This was stated at the hearing if you listened very closely.

Gallo and an attorney for Koi systems called in on the phone.

The judge did not grant the motion for a Chapter 7 Trustee basically because HF said they were preparing their own Chapter 11 Filing. The judge actually referred to the bankruptcy law and conferred with a representative of the US Trustee's office who was present. It would be highly unusual to appoint a trustee in an involuntary Chapter 7 case when it was about to be converted to a Chapter 11. As this is likely to happen next week the judge apparently did not see much point in doing so for only a few days. He allowed the TRO to stay in force as a stopgap measure and made it clear that Hashfast was allowed to continue selling inventory at reasonable market value but was not allowed to do any joint ventures or intra-LLC transfers over the next few days.

[aasl]

What is the recent status?