Topic: HashFast announces specs for new ASIC: 400GH/s - page 110. (Read 880461 times)

At this point I feel I can address some of what I have read on this forum that is just crazy talk:

There is no 16nm chip. Wow. Now that would be something. New chip designs were in development that  would apparently get more performance out of 28nm.

There is no secret mining bunker. The liquidbits kickback deal was a bit of a surprise to me, but the actual amount of GHS shipped to liquidbits was fairly negligible and I'm sure they never paid anything back to HF considering what they were owed. There was absolutely no HF mining operation beyond burn-in and engineering. There was never a surplus of hardware, and when there was, there was nowhere to plug it in.

There were no "used" boards sold to anyone, including VMC. Every single board was tested, and that test process involved applying thermal paste. Without it the chips overheat in seconds. In the interest of shipping rapidly, the paste was not cleaned off the dies by the contract manufacturer.

There is no money. The company has been completely undercapitalized from the get-go. I am not sure why it took so long for management to realize this. Some sort of cognitive dissonance set in.   Most of the haphazard decisions and erratic behavior can be explained by a lack of money and hardware that only worked perfectly at about 75% yield. There was also a bit of an obsession with setting the performance bar for hardware at near the theoretical maximum at the expense of yield and reliability.

There was no extravagant spending, no gold plated yachts, Caribbean vacations or anything else. If anything they were fairly cheap. The offices were actually a bargain and a short term lease. Many decisions were made, however, with the expectation of rapid growth. Money was thrown at problems under the assumption that sales would keep rolling in.

Building hardware is expensive. Really expensive. Especially in a hurry, and especially when it doesn't work quite right. So are lawyers.

If there are missing millions, it will be because of outright sloppy accounting.  A tremendous amount of orders were taken in a very short time with nowhere near the amount of financial oversight that should have been present. I would not be surprised if they pull a GOX and find something in a wallet that got overlooked. 

 

What is the recent status?

Eduardo is out as CEO. This was stated at the hearing if you listened very closely.

Gallo and an attorney for Koi systems called in on the phone.

The judge did not grant the motion for a Chapter 7 Trustee basically because HF said they were preparing their own Chapter 11 Filing. The judge actually referred to the bankruptcy law and conferred with a representative of the US Trustee's office who was present. It would be highly unusual to appoint a trustee in an involuntary Chapter 7 case when it was about to be converted to a Chapter 11. As this is likely to happen next week the judge apparently did not see much point in doing so for only a few days. He allowed the TRO to stay in force as a stopgap measure and made it clear that Hashfast was allowed to continue selling inventory at reasonable market value but was not allowed to do any joint ventures or intra-LLC transfers over the next few days.

You could still cast a voodoo spell on Eddie if he shows up on Wednesday.  Some things beyond our understanding might be helpful.


Somebody might be giving them money.  If their finances were such a wreck, and they have no resources to convert the chips into hashing machines, I don't see how they could present a credible Chapter 11 plan without an infusion of cash.

I'll be the first to admit that the legal process was beyond my comprehension.  But, regardless, I enjoyed the experience.

Just got an update from someone who was listening in.  Hashfast told the court that they would voluntarily consent to a conversion to Chapter 11 bankruptcy (vs. the Chapter 7 that people are trying to force them into currently)  The judge was hesitant to appoint a trustee because they wouldn't have any authority if/once the bankruptcy was converted to chapter 11.  He didn't deny the motion he just delayed making a decision on it until Wednesday when he was perhaps expecting a more concrete answer on if HF really did intend to submit to Chapter 11.  The judge also adopt the TRO that liquidbits(?) got from arbitration that disallows HF from doing anything shady with their assets.

That was an experience!!  I think I'll go back Wednesday.  I sort of felt the pain of the judge trying to wrap his mind around Bitcoin.  I'm all in on cryptocurrencies and remember my "what huh" moment when I first heard about BTC.    I wanted to volunteer my services to help make the court more familiar with the technology and protocol.   

Sounds like they are talking about the priority of the people who are owed money by HF.  As a consumer there appears to be a provision in bankruptcy law to give you priority on a pre-payment or deposit of up to $2,600 that doesn't mean you can recover the rest if you are owed more but you just wouldn't get preference on the remainder.

http://blog.bdo.com/index.php/2011/06/23/treatment-of-customer-deposits-after-a-retailer-files-for-bankruptcy/

503b9 is about suppliers who are owed money by the bankrupt company and given them preference under certain circumstances.
http://www.burbageweddell.com/bankruptcy-creditor-rights-overview/section-503b9-administrative-expense-claims/

The real question is what the heck did Hashfast _do_ with all that money people gave them to build these chip & machines some large number of which were never delivered.

There's no way they're coming out of this alive.  I'm sure its a technical delay, maybe to allow additional claims to be presented, or some legal prerequisite to be satisfied, whatever.  Monday is a holiday here, so this is less than 1.5 working days' delay.

Maybe entropy will come by in a while and update us.

Motion denied? The emergency one to appoint a trustee? Why? Denied or delayed to Wednesday?

It would be great if someone spent some lines once a hearing to update us

In other words they got another week to hide what can be hidden and to try to find the invoices for the millions of dollars unaccounted for, great!

503(b)(9), if that's what was mentioned, is a section of the code apparently intended to protect suppliers of goods and services to firms that are going belly up.  Totally armchair here, I know as much about bankruptcy proceedings as I do about speaking Thai, but it suggests to me that there are unpaid suppliers of materials/services to Hashfast that are pressing claim.  That or the judge is creating a time window during which any such suppliers could present themselves.

Hearing extended until 930am Wednesday.  I'm here now.  $2600 statutory limit for us solo purchasers.  Not sure what this means.  Something about 503b 9.  #duncwaconfused.  Motion by creditors denied.

http://www.coindesk.com/hashfast-just-one-hearing-away-involuntary-bankruptcy/ 

Cue fat lady!

Let's see.... it should have started by now....

If someone needs directions:



I don't know if someone other than their lawyers will be there today, but it would be positive if you guys spent some hours of the afternoon together, creditors and HF. What could go wrong?

Meanwhile, pepperming:

Maybe everyone with a legitimate interest in the outcome should settle down and resist the urge to speculate about the intentions of any of the parties who have a legal team involved at this point. Casting aspersions won't do anything to further an equitable outcome.

Regardless of their motivation or intent, the intelligence gathered and acted upon by LiquidBits seems to have resulted in preserving the bulk of the remaining assets of Hashfast. Who knows where that inventory would be right now if action was not taken?

My guess is that the LB team is fully aware of how bankruptcy works and will put forth a plan that they could reasonably expect a the other creditors and the trustee to accept. It's not like a trustee is going to just hand over all the assets to a single creditor. Koi and others already have a seat at the table and the creditor list will continue to grow.

As fucked up as things are, this current turn of events might be the least shitty of many potential outcomes. I am actually more optimistic about Hashfast Hashfast 2.0 than I have been in a long time.

I sure hope someone will go down to the hearing and report back with a blow by blow.

Someone gets it.

Yes, but after about 3pm today, US west coast time, the old Hashfast will likely cease to exist. 

In Eddie's place there will be a court-appointed manager.  That manager's job will be to fairly allocate Hashfast's remaining assets among its creditors.  (S)He will be responsible to the court, not out for personal gain or responsible to shadowy porn investors, or whatever.

It's your own business, and of course the possibility of upsets exists, but paying 40% of your proceeds to a fat lawyer doesn't seem to make sense.

It's like this, for example:

For Batch 1 Babyjet with unpaid MPP (or insert some other item here, say, for every Batch 3 Sierra), each customer will receive a set amount.  Let's say it's $10.  If you don't hire Gallo, you will basically get your $10 back.  If you do hire Gallo, you will get $6 back.

Yeah, it's more complicated than that, but that's the basic jist.