VIRGINIA BEACH, Va. (AP) — A bitcoin mining operation that filed for bankruptcy one year after receiving nearly $500,000 from the city of Virginia Beach has been ordered to liquidate its assets.
The Virginian-Pilot reports a federal judge approved a motion on Tuesday to convert the case involving BCause Mining LLC and BCause LLC from a reorganization to a chapter 7 liquidation.
BCause Mining filed for chapter 11 bankruptcy a year after receiving the grant to expand to a local rented warehouse. The company had pledged to invest $64.8 million in a massive expansion that executives claimed would make it the largest cryptocurrency mining operation in North America.
The majority of that investment appeared to be in mining equipment owned by others who paid fees to BCause.
Now, 23 creditors claim they're owed $13.3 million.