Virginia Beach’s bitcoin mining operation BCause Mining, was recently ordered to liquidate all of its current assets.
Yesterday’s article of the local news outlet the Virginian Pilot, shared that BCause Mining had already filed for bankruptcy earlier this year. After a while, a local federal judge finally approved the motion and the company was able to begin converting the filing from the so-called “reorganization” to a chapter 7 liquidation.
This court order was plain and simple: BCause Mining was to effective immediately, shut down all of its ongoing operations and layoff the 27 full-time and 4 part-time employees.
In the beginning of the year, the now-defunct crypto mining company received a $500K grant from the city of Virginia Beach. The funds were supposed to be used for expansion and relocation to a locally rented warehouse.
The company even pledged to invest the incredible $60 million in the grand expansion, which if true, would have turned BCause into the largest crypto mining operation in North America.
BCause Mining failed to deliver
As most people have figured out, the government-spent money didn’t go where it should have and the city is now considering to file a claim in bankruptcy court to attempt and recoup some of the money it had paid off to the crypto mining company.
The city of Virginia Beach will by all accounts, be considered an unsecured creditor. This means that the city’s claim will be addressed dead last after all the secured claims are dealt with accordingly.
A few months ago, Plouton Mining confirmed the rumors that its building the largest solar-powered bitcoin mining operation in North America. Construction is already taking place in Western Mojave, known as the rain-shadow desert.
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Tags:BCause Miningchapter 7 liquidationlargest Nort American crypto mining operationVirginia Beach crypto
Categories:Crypto Mining News