19 Nov one of the largest American mining and blockchain-companies Giga Watt filed for bankruptcy. The company argued that it was “insolvent and unable to repay debts.”
According to court documents, Giga Watt owns assets in the amount of from 0 to 50 thousand dollars. According to preliminary estimates, the number of creditors does not exceed 50 people, but current liabilities are estimated between 10 million to 50 million dollars.
In addition to bankruptcy, mining firm among the five largest in the United States also passes through the eviction in the County of Douglas. According to the managing Director of Giga Watt George Turner, who led the mining in East Wenatchee and Moses lake, a bankruptcy petition was filed by the Board of Directors and does not accord with his unit. He advocated for bankruptcy a few months ago, but this news turned out to be his “surprise”.
Why Giga Watt suspicious
Writes Сointelegraph, Giga Watt was formerly known as MegaBigPower. It was founded in 2012 by a former Microsoft software engineer Dave Carlson. According to information, he first learned about Bitcoin in 2010. In July 2017 the company conducted an ICO. According to iFiberOne, Giga Watt produced tokens for financing of building a mining farm with a capacity of over 30 megawatts and a private substation.
In March 2017 Carlson claimed that the company had “no need” to register with the SEC for the conduct of ICO, because “these tokens people can get access to an electrical infrastructure that provide their miners”.
It is noteworthy that in September this year, Carlson is “quietly” resigned as CEO of Giga Watt. Probably the reason for this was the lawsuit from Silver law offices Miller, who accused the company of carrying out illegal ICO without registration with relevant regulatory bodies.