Hashfast, the San Francisco-based mining hardware firm, is heading toward a public auction after its Chapter 11 bankruptcy filing in June proved insufficient to save the company. The company had promi
Hashfast, the San Francisco-based mining hardware firm, is heading toward a public auction after its Chapter 11 bankruptcy filing in June proved insufficient to save the company. The company had promised customers cutting-edge bitcoin mining equipment—specifically the Yoli Evo capable of reaching 800 GH/s per board—but ultimately failed to deliver on those commitments.
The company's troubles became apparent well before the formal bankruptcy. Court documents show a petition had been filed against the manufacturer by May, and the firm had already slashed its headcount in half. CEO Eduardo de Castro stepped down, remarking that staff members were "as poor as church mice."
The June filing under Chapter 11 was designed to allow restructuring and debt relief while keeping operations running. This contrasts with Chapter 7 bankruptcy, which would have meant immediate shutdown and asset liquidation. Despite this protective measure, the company's situation deteriorated sharply.
Hashfast announced heavy equipment stocks available for quick sale via a blog post in July. A subsequent auction wave in November followed, accompanied by serious accusations—including fraud allegations and claims the firm ignored customer communications entirely.
Financial records reveal Hashfast faces roughly $40 million in outstanding obligations to creditors globally, while maintaining only about 5 bitcoin in reserves. An especially problematic development: the company continued selling mining chips even after bankruptcy protections were in place.
A soured $6 million transaction with Liquidbits exemplifies the company's problems. The purchaser never received full hardware supplies and couldn't obtain a refund. Liquidbits, the party that initiated litigation against Hashfast, argued that sluggish delivery timelines contributed to losses exceeding what a more efficient liquidation would have incurred.
Industry peers face comparable pressures. CoinTerra faces customer litigation over consistently late shipments, while Butterfly Labs is currently defending itself against Federal Trade Commission enforcement action. These two manufacturers are believed to collectively owe customers $1.2 million.
The full Hashfast equipment lineup will be available for bidding beginning December 4 at 10am Pacific at Four Embercadero Center on the 17th Floor in San Francisco. Prospective buyers must complete certification requirements by December 2 to participate.
