Court Orders Freezing of Hashfast Bitcoin Wallets

Court Orders Freezing of Hashfast Bitcoin Wallets

ASIC mining hardware manufacturer HashFast Technologies LLC and HashFast LLC, are in heaps of trouble after failing to satisfy its customers. A court in Texas has allowed a temporary restraining order to freeze the mining hardware maker’s Bitcoin wallets.

Temporary Restraining Order on HashFast Bitcoin Wallets

This temporary restraining order was part of a larger lawsuit that was filed against HashFast on March 27th. Cypher Enterprises issued the lawsuit claiming that it had ordered and given HashFast money for many Bitcoin mining hardware in October last year. However, Hashfast did not deliver on the right time causing Cypher Enterprises to cancel its orders.

Cypher Enterprises explains that it hadn’t gotten any refund from HashFast nor did the company receive any reply from HashFast to the cancellation. On the bitcointalk forum, HashFast said that if a refund was required, it would pay in Bitcoin. However, this never happened.

What Does this Mean for Mining Companies?

Having a court issue the freezing of mining hardware companies’ Bitcoin assets could set a precedent for future mining companies. Cypher Enterprises’ lawyer, Robert Bogdanowicz said,

“Outside of the Mt. Gox bankruptcy proceedings, I’m not aware of any other Texas courts which have entered a restraining order like this. It speaks to the legitimacy of cryptocurrencies and a growing understanding of their value and importance to businesses.”

This may be true, but it means that Bitcoin mining hardware companies need to speed up their games in “the survival of the fastest.” Due to the fact that Bitcoin’s mining difficulty increases as more powerful miners join the field, mining companies need to quickly develop proficient and fast working hardware. This is to satisfy the demand of the miners and to keep a balance within the Bitcoin world.

If Bitcoin’s difficulty of mining increases and a Bitcoin company has still not delivered their product, it renders the product less efficient. This means that the mining companies need to be on top of their game in order to satisfy their customers.

Image via Hashfast