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.