Earlier this week crypto-mining company GigaWatt filed for bankruptcy under Chapter 11 in the Eastern District of Washington, claiming that the firm is “insolvent and unable to pay its debts when due.”
In addition, the company is also reportedly facing eviction from its Pangborn Memorial Airport Business Park address with landlord, the Port of Douglas County, having already initiated proceedings to that end.
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 serve as payment for the project’s in-house teams to mine on their behalf.
At the time, the lawsuit had prophesied that “the Giga Watt Project .. might never be fully launched.”
This latest filing appears to have confirmed those suspicions and has further revealed that GigaWatt currently possesses less than $50,000 worth of assets with its liabilities possibly extending to $50 million.
Board secretary and chief coordinator Andrey Kuzenny served as signatory 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.