GIGAWATT MINING COMPANY GOES THROUGH BANKRUPTCY
In the United States the company for manufacturing mining equipment GigaWatt initiated the procedure of bankruptcy. The debt of the startup only to the largest creditors is $7 million. In May 2017, the project raised $ 22 million during the ICO, but failed to implement the “road map” within the promised time frame.
The list of creditors includes a utility company (debt of $ 310 thousand) and an electric utility company (debt of almost $ 500 thousand). According to court documents, the assets of GigaWatt are estimated at less than $ 50,000, while the amount of liabilities is $ 10-50 million.
Giga Watt was founded by David Carlson, who planned to create small mining farms with sources of cheap power supply and constant maintenance of equipment. The first farm was to appear in Washington State. For these purposes, in May 2017, the project during the ICO collected cryptocurrencies worth about $22 million.
But in January against the company was filed a class action with charges of selling unregistered securities. The plaintiffs demanded the company to return the investments, as GigaWatt did not meet the terms of the “road map”. In fact the company refused to voluntarily return the invested funds.
In late October, local media reported that the project is on the verge of bankruptcy.