BCause Mining LLC, involved in Bitcoin mining operations and situated in the city of Virginia Beach in the United States, has been subjected to liquidation. The news has been confirmed by an Attorney of BCause who clarified that the firm’s operations have come to a halt.
The local news outlet, Virginia-Pilot, published an article on October 9, 2019, stating that BCause Mining firm filed for chapter 11 bankruptcy earlier this year. In response to that, a federal judge approved the motion to convert the case involving BCause Mining LLC and BCause LLC from a reorganization to a chapter 7 liquidation. Janet S. Baer, the Chicago Bankruptcy Judge, has also appointed a trustee for the proper procedures of the concerned case.
As per the order, BCause Mining was asked to liquidate its assets, put an end to its operations, and lay off its 27 full-time and 4 part-time workers.
In January 2018, BCause Mining company was given a whopping $500,000 grant by the city of Virginia Beach to diversify the scale of its operations to a local rented warehouse. The company then pledged to invest more than $60 million as part of a crucial expansion which would have placed the platform as North America’s largest cryptocurrency mining operation.
Julie Hill, the municipal spokesperson of Virginia Beach, said that the city is contemplating to file a claim in the bankruptcy court with an intention to redeem a portion of the investment made to the firm. The city of Virginia Beach will be treated as an unsecured creditor, which implies that its claims shall only be addressed to after the settlement of all the secured clients.
One of the prime creditors, BMG Operations Ltd. of Antigua, has claimed that it owes more than $6.8 million. The total 23 creditors including BCause executives, landlords, and U.S Customs and Border Protection have claimed that they owe $13.3 million to the firm.