Earlier this week crypto-mining company GigaWatt filed for bankruptcy under Chapter 11 protection in the Eastern District of Washington bankruptcy court, claiming that the firm is “insolvent and unable to pay its debts when due.”
In addition to the bankruptcy, the company is also reportedly facing eviction from its Pangborn Memorial Airport Business Park address with the landlord, the Port of Douglas County, having initiated proceedings for its removal from the premises.
After launching a successful ICO in the summer of 2017 that raised over $20 million, GigaWatt faced accusations of securities fraud that resulted in the firm being hit with a lawsuit at the beginning of this year.
Investors in the ICO had expected the project’s native token (WTT) would either grant them access to the firm’s mining facilities rent-free for 50 years or have the in-house teams mine on their behalf.
At the time, the court documents prophesied that “…the Giga Watt Project is purportedly still being developed and, upon information and belief, might never be fully launched.”
This latest filing appears to confirm those suspicions and reveals that GigaWatt currently has less than $50,000 worth of assets to its name while their liabilities possibly extending to $50 million.
Giga Watt’s board secretary and chief coordinator Andrey Kuzenny served as signatories to the court documents, with CEO and founder Dave Carlson having already left the company along with other members of the workforce in August in a forlorn cost-cutting exercise.