World Bitcoin Association files for bankruptcy

World Bitcoin Association, a New York-based bitcoin company affiliated with Bitcoin Center NYC, has filed for Chapter 11 bankruptcy protection after going through legal troubles for months.

The company has been entangled in a legal dispute with its landlord over site issues at 40 Broad Street that houses Bitcoin Center NYC. It claimed between $100,000 and $500,000 in liabilities, and up to $50,000 in assets, according to court documents, CoinDesk reports. The filing also says that the WBA expects to have enough funds to pay unsecured creditors, with a creditor meeting to be held on 17th April.

The legal situation may see further developments in the coming days, said Nick Spanos, Bitcoin Center NYC co-founder. The organisation is planning to file to have the bankruptcy petition dismissed.

The company first filed suit against its landlord, 40 Broad Associates No 2 LLC, in October last year, and Catafago is representing the company in those proceedings. Shafferman & Feldman LLP will be handling its bankruptcy case.