U.S.-based bitcoin mining company, Giga Watt has declared bankruptcy.
The firm which is still owing its creditors millions, filed for Chapter 11 bankruptcy on Monday in Washington.
According to CoinDesk, the firm owes its biggest 20 unsecured creditors as much as $7 million.
Creditors include the utilities provider in its Douglas County base, having a claim of over $310,000, and electricity provider Neppel Electric, which is owed almost half a million dollars.
Court documents revealed that Giga Watt’s assets is estimatedly worth less than $50,000, while its estimated liabilities between $10–50 million.
In the meeting involving shareholders on November 18, which was convened by the Director, Andrey Kuzenny, who is said to own more than 10 percent of the mining firm.
The minutes said: “The corporation is insolvent and unable to pay its debts when due.” continuing it added that, “The corporation and its creditors would best be served by reorganization of the corporation under Chapter 11 of the Bankruptcy Code.
Giga Watt which was founded Dave Carlson, aimed to open the mining industry to smaller scale miners by creating customized mining “pods” along with a cheap and stable electricity supply and round-the-clock maintenance at a facility it built in Washington.
More so, it would be recalled that in May 2017, Giga Watt held an initial coin offering (ICO), this was in a bid to allow investors to buy a stake in the company’s services. This ICO rose to about $22 million-worth in cryptocurrency at the time.
However, in January Giga Watt was sued for allegedly conducting an unregistered securities offering; the investors wanted their investments returned.
Their reason, was that the firm did not meet construction deadlines and then allegedly did not honor promises to refund contributions.