Giga Watt mining company goes out of business with heavy debts

Posted 22 November, 2018

US-based crypto mining company – Giga Watt – has announced bancruptcy this week.

According to the news reports, the company filed for Chapter 11 bankruptcy at the Eastern District Court of Washington. However, the company still has to pay back debts to its creditors, the number of which reaches 20 companies, including public utilities and power suppliers. The court stated that Giga Watt owes about $7 million. Of this amount, the company has refunded more than $310,000 to a public utility in Douglas County and power supplier Neppel Electric (some $500,000 debt).

While the company's debts are estimated by the court at $10-50 million, the cost of Giga Watt hardly reaches $50,000.

Last weekend, the company held a special shareholder meeting during which it was considered Giga Watt insolvent and unable to pay off debts in time.

For reference, the mining company was created by bitcoin miner Dave Carlson, with $22 million ICO held in May. The received investments were planned for the launch of mining activities and setting up a crypto storage. Meanwhile, investors were said to receive Giga Watt token or mining capacities.

At the same time, Giga Watt faced a class action case in January 2018 in which the plaintiffs cited unregeistered securities offering.

Previous story

22 November, 2018 12:57

← Coinbase class action case extended with BCH insider trading issue

This week the Federal Northern District Court of California has reportedly received extended class action case against the leading US-based crypto company Coinbase. The plaintiffs cited that the company had made false statements about Bitcoin Cash listing last December as well as provide additional information about insider trading. According to the new case amendments, the company is said to deliberately provide conditions for BCH price hikes allowing consequently a number of traders to make buy/sell operations at the most attractive prices before other users.

Coinbase class action case extended with BCH insider trading issue

Next story

21 November, 2018 15:13

Taxpayers dealing with cryptos to be checked in Spain →

The tax agency of Spain (Agencia Estatal de Administración Tributaria, AEAT) reportedly stated that it would detect and monitor the financial impact coming from the new technologies (in particular, cryptos and blockchain) as measures to prevent the tax fraud. The initiative has been already added to the annual tax control plan. The National Fraud Investigation office, branch of the tax agency, has checked Spanish companies, banking organizations and intermediaries, and after that, it has formed the list of 15,000 taxpayers for more detailed examination.

Taxpayers dealing with cryptos to be checked in Spain
Write a comment
Prove you’re not a bot + 9 = 22