VIRGINIA BEACH, Va. (WAVY) — A local Bitcoin currency operator has filed for Chapter 11 protection.
Bcause founder Tom Flake created what is a top five cryptocurrency mining operation in the world.
Flake confirmed to Andy Fox Tuesday night that he has been forced to file for Chapter 11 reorganization after one of his equipment suppliers placed a lien on his bank account.
Flake told us and shared with company investors the lien made it impossible to pay current obligations including the power bill to operate some of the over 16,000 small computers that record cryptocurrency transactions.
In the notice, Flake says the Board of Managers decided to file Chapter 11 protection.
Flake insists Bcause is not going out of business, and continues to operate, but this protection will allow the company to get financials in line so they can remain open while they maneuver through the court system.
Flake blames the market downturn over the last year in the bitcoin mining community, and unfortunately, he writes “We are not immune to market events.”