Bitcoin – Commodity Or Currency; California Bankruptcy Judge To Decide
Bitcoin’s status as either a currency or a commodity is at the center of a California lawsuit between a bitcoin mining computer company and a person the company paid to promote it, according to The Recorder, a California legal and technology newspaper. Marc Lowe, a California doctor, received payment in bitcoin to promote HashFast Technologies’ bitcoin mining computer. HashFast Technologies filed for bankruptcy in 2014 and its bankruptcy trustees claim the doctor was overpaid and want him to return the payment of 3,000 bitcoin, now worth $1.2 million. They argued bitcoin is a commodity....
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A US district judge has ruled, for the purposes of a bankruptcy case in California, that bitcoins are a kind of intangible property. As reported earlier this month by CoinDesk, the US Bankruptcy Court for the Northern District of California is hearing a case filed by the bankruptcy trustee for HashFast, a bitcoin mining firm that declared bankruptcy in 2014. The trustee is suing a former promoter for HashFast, Mark Lowe, and is seeking the return of 3,000 bitcoins alleged to have been fraudulently transferred to Lowe prior to the firm's collapse. In recent weeks, both sides have submitted....
Bitcoin’s dual role as a commodity and a currency can create financial recovery disputes when a company that pays for services using bitcoin goes bankrupt. A bankruptcy court judge made a ruling on Friday in one such case, stating that the cryptocurrency is not the same as U.S. currency, but making it clear that he wanted the ruling confined to a specific legal framework, according to The Recorder, a California legal and technology newspaper. Bankruptcy Judge Dennis Montali in the Northern District of California said Friday that in the case of HashFast Technologies, a mining company that....
Judge orders Karpeles to US for hearing. Mark Karpeles, the former boss of Mt gox, was informed today that if he wants to avail of bankruptcy protection, he must travel to Dallas and take part in his formal deposition. Karpeles, who is French born and lives in Tokyo, had hoped that his suggestion of a video-linked deposition would be acceptable, enabling him to get an extension of his bankruptcy protection in the US. Judge Stacey Jernigan, has stated, as reported by Reuters, that this would not be acceptable to the court. Reuters today reported the Judge as saying: "If he avails himself of....
A federal judge in a New York bankruptcy court has frozen the assets of crypto hedge fund Three Arrows Capital (3AC). “A key part of this motion is to put the world on notice that it is the liquidators that are controlling the debtor’s assets at this stage.” Bankruptcy Judge Freezes 3AC’s Assets Judge Martin Glenn, a United States bankruptcy judge for the Southern District of New York, granted an emergency motion Tuesday to freeze the remaining assets of bankrupt crypto hedge fund Three Arrows Capital (3AC), CNBC reported, noting that it attended the hearing.....
A California bankruptcy court is set to weigh in on whether bitcoin should be considered a currency. The hearing, set for 19th February, follows months of legal wrangling between the trustee of bankrupt bitcoin mining firm HashFast and Marc Lowe, a former promoter for the service who operated under the handle 'cyberdoc'. Trustee Michael Kasolas filed suit against Lowe in February of last year, seeking to recoup 3,000 bitcoins that had been paid by HashFast to Lowe for promoting the service, including a series of posts on the Bitcoin Talk forum. The trustees alleged that Lowe was an insider....