Hashfast, the troubled Bitcoin miner hardware manufacturer, filed for Chapter 11 bankruptcy last week and was awarded the protection over the weekend.
Chapter 11 allows Hashfast to continue operating in a limited fashion as its profits are funneled to its creditors in accordance to a plan the court sets. The company was previously facing Chapter 7 bankruptcy, which would have resulted in the liquidation of Hashfast's assets and the immediate end to this story.
Hashfast, and by proxy the court who allowed the company to enter Chapter 11 bankruptcy, believes it can provide more value to its creditors by continuing operations and bringing in more revenue.
But things obviously are not business as normal for the beleaguered company. Hashfast is now entering a reorganization phase for its upper management. Most notably, its CEO Eduardo DeCastro has resigned. The company's CTO, Simon Barber will fill DeCastro's role in the day to day operations of the company as it searches for a new CEO.
Hashfash has hired Katten Muchin Rosenman, LLP a Washington D.C. based law firm that, according to its website, includes over 650 attorneys and have represented “a third” of the companies listed on the Fortune 100.
We will keep you up to date with the continuing story of Hashfast as it breaks.