According to a CoinDesk report, U.S.-based Bitcoin mining firm Giga Watt owes millions to creditors and has declared bankruptcy.
The company declared it still owes its larges 20 unsecured creditors almost $7 million in court when they filed for a Chapter 11 bankruptcy on Monday in the Eastern District of Washington.
According to the court documents, Giga Watt has estimated liabilities in the range of $10-50 million and assets worth less than $50,000.
Among the creditors, there is electricity provider Neppel Electric owed almost $500,000 and the utilities provider in its Douglas County base with a claim of over $310,000.
During a special meeting of the shareholders of Giga Watt, held on Nov. 18 it has been revealed that “the corporation is insolvent and unable to pay its debts when due,”.
Andrey Kuzenny, a Giga Watt director owning more than 10% of the mining firm was the one who called the meeting.
Bitcoin miner Dave Carlson who is also the founder of Giga Watt, created the company to make the industry available to smaller scale miners by developing customized mining “pods” as well as a cheap and stable electricity supply and 24/7 maintenance at a facility in central Washington.
In May 2017, the company held an Initial Coin Offering (ICO) that raised $22 million worth of cryptocurrency. In January 2018, the company was sued by a group for supposedly conducting an unregistered securities offering. The accusers were attempting to return their investments as the company was not able to stick to the construction deadlines and then supposedly did not honor their promises to refund contributions.