According to the Virginia Pilot report, BCause Mining LLC, a bitcoin mining firm based in the US city of Virginia Beach, was ordered by a federal judge to liquidate its assets to compensate its creditors. Earlier, the bitcoin mining firm filed for Chapter 11 bankruptcy after losing a lawsuit filed by Wesco Distribution, one of its primary vendors, for owing $1.9 million to it.
In January last year, BCause received a grant of $500,000 from the city of Virginia Beach to expand its operation to a rented warehouse. At the time, the company was looking to become the largest crypto mining firm in North America.
The company went downhill after it faced a lawsuit from one of its primary vendor for owing $1.9 million to it. And at the same time, the company had to come to a settlement with its electricity provider Dominion Energy for an unpaid bill of $1.7 million.
The bitcoin mining firm has many creditors that it owes money to, including its executives, landlord, US Customs, and Border Protection. In total, the company owes more than $13.3 million to its creditors.