The news about KnCMiner, a bitcoin mining hardware company, filing for bankruptcy floated in the media not so long ago.

Latest reports now suggest that a class action lawsuit filed against the startup is proceeding despite the bankruptcy filing. Cryptocoinsnews reported last year in April that KnCMiner was facing three class-action lawsuits.

According to recent report from CoinDesk, lawyers representing the “most prominent” of several class-action lawsuits have entered a claim against the startup's bankruptcy estate in Sweden. They suggested that the group has provided information to local law enforcement in order to ensure the firm can provide customer reparations.

"We have handed over all claims with the verifications to the criminal authorities for them to initiate the process of freezing KnC assets to cover your claim”, an email to class action participants reads.

This latest development in the case follows a verdict rendered in April that said that plaintiffs involved should be considered businesses, not consumers – which essentially prohibited them to seek redress from the consumer standpoint.

The company announced in May that it has filed for bankruptcy citing the imminent bitcoin block reward halving and rising competition from miners based in China. It raised $32 million in venture funding, drawing support from investors including Accel and Creandum.

The company came under fire for allegedly selling defective and underperforming miners, using deceptive marketing tactics for selling its products, as well as delayed shipment of the products.