Quote from: perezoso on May 30, 2014, 06:36:55 PM

Alright, well, this is what I hear. I don't think any of this is secret, it's just secondhand information. I assume it's accurate, but I have no personal knowledge.

Hashfast's debt to customers is significantly into 8 digits, i.e. > US $10,000,000. Maybe even $15 million.

Hashfast also has debt to suppliers, perhaps around $2 million. The suppliers may physically control some Hashfast assets, cough, like the important ones.

Emerging from bankruptcy will require a large infusion of cash. It is not clear if anyone is prepared to make such an investment at all, much less on terms acceptable to the creditors.

The obvious question is where all the damn money went. I have nothing new about that. I've previously posted my own suspicions.

It also brings to mind Hashfast's later apologists, like Amy A. and now, the "dog". What bullshit they are full of.

Come on, Amy, claiming Hashfast was solvent until the day before you were fired? Lie.

Dog, you're trying to rewrite events into a narrative that makes you feel better about what happened, and which I doubt has much to do with reality.

I doubt customer liabilities are over $10 million, but I don't know how bad it is in total. I'm sure it's bad though. There seemed to be some huge commitments made to appease big customers. As for suppliers... Well... In a bankruptcy context it may not matter, as those suppliers may be ordered to hand over the goods that are already finished and their debts end up treated like any other creditors. That won't make those suppliers very happy though.

The only thing I will flat out deny above is that Amy A was lying.
She came on very late in the game with the best of intentions, and she has taken a lot of flack for a situation she had ZERO part in creating.

She was shown financials that put X value on assets and hadn't accounted for all the liabilities, because those were the numbers that existed at the time. The value of a chip over the last few months has a lot of room for debate. The value of a gigahash has plummeted rapidly. Very few rank and file people at the company had a grasp on the economics of mining. Hell, most people who are miners don't have a grasp on it. For the most part I would say top management and some of the core tech team does have a pretty good grasp on it. But they had a certain overestimation of how strong their lead was and what the company could really pull off with the cash from preorders.

Towards the end top management seemed to be grasping at straws and avoiding elephants in the room. There was always the promise of some huge chip deal that would bring in a bunch of cash. Apparently, from the filings, there still seems to be this possibility.

I have a feeling they are only now finally tallying up how bad the liability situation is. The chapter 11 filing will have to reveal this.