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Giga Watt recently filed for bankruptcy in a Washington court, claiming to have less than $ 50,000 in assets, with debts for millions of dollars.
Millions of dollars in debt
Second iFiberOne, The American cryptocurrency company, Giga Watt, filed a declaration for the bankruptcy code of Chapter 11 in a federal court located in the eastern district of Washington. The company claimed to own less than $ 50,000 in assets while it owed nearly $ 70 million to creditors.
George Turner, the company's CEO, however, said that the board of directors made the deposit without going through his office. Turner also noted that the news of the bankruptcy declaration was surprising, given that he recommended the same move several months earlier.
Ironically, the biggest creditors of the company are its affiliated companies, Cryptonomos and Giga Watt PTE. Giga Watt owes both Singapore-based companies $ 2.3 million and $ 1.3 million respectively. Other creditors include Neppel Electric, due $ 460,658, the construction of Talos, owed over $ 350,000, and Douglas County, with $ 310,329.
Dave Carlson founded the virtual currency mining company in 2012 to serve as a host for digital currency miners. The company also conducted its initial money offer (ICO) in July 2017, which generated around $ 22 million.
However, the ICO project found a great deal of dissatisfaction on the part of investors. Failed to meet crucial deadlines and customers could not have virtual currency hash at the proposed time. As a result, the US law firm for investments in cryptocurrency, Silver Miller, sued Giga Watt for violating securities laws by bypassing recognized regulatory bodies.
Dave Carlson left Giga Watt in August, and a month later, in September, the company fired most of its employees.
George Turner also claimed that Giga Watts was operating while extracting virtual currency from his position in Lake Moses. Commenting on the declaration of bankruptcy of Chapter 11, Turner said that the long-term implications for society were not yet clear.
Bitcoin price crash hitting miners
The cryptocurrency market is currently at its lowest point, with a total market capitalization of $ 145 billion, with the price of major currencies such as BTC, XRP and ETH, which plunge down the cliff. With the bitcoin currently trading below $ 4,500 and the BTC hash rate further decreasing, many small-scale BTC miners are finding it increasingly difficult to extract Bitcoin.
Ethereum World News reported that eToro's market analyst, Mati Greenspan, noted that the Bitcoin hash rate was at least from August 2018. The analyst also claimed that BTC's low prices were forcing the miners to close their plants. In addition, some Bitcoin miners have switched to Bitcoin Cash, to end the ongoing BCH hash wars.
In addition, cryptocurrency miners removed four models of BTC mining machines, including Antminer S7 and Bitmain's Antminer S9. Even AvalonMiner 741 in Canaan has been removed. The miners claimed that these models were expensive to manage, following the current market situation. Another mining company, Suanlitou, reported having suspended contracts involving Bitmain & # 39; s Antminer S9
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