Virginia bitcoin mining operation told to liquidate assets

VIRGINIA BEACH, Va. (AP) — A bitcoin mining operation that filed for bankruptcy one year after receiving nearly $500,000 from the city of Virginia Beach has been ordered to liquidate its assets.

The Virginian-Pilot reports a federal judge approved a motion on Tuesday to convert the case involving BCause Mining LLC and BCause LLC from a reorganization to a chapter 7 liquidation.

BCause Mining filed for chapter 11 bankruptcy a year after receiving the grant to expand to a local rented warehouse. The company had pledged to invest $64.8 million in a massive expansion that executives claimed would make it the largest cryptocurrency mining operation in North America.

The majority of that investment appeared to be in mining equipment owned by others who paid fees to BCause.

Now, 23 creditors claim they’re owed $13.3 million.

___

Information from: The Virginian-Pilot, http://pilotonline.com

Associated Press

Associated Press

More News

WVVA WEATHER AUTHORITY
Bland
53°
Hinton
53°
Wytheville
Lewisburg
Welch
55°
Grundy
Fayetteville
Union
52°
Marlinton
Connect with WVVA
Top Stories
Scroll to top
Skip to content