Bankrupt Bitcoin Miner Giga Watt Forced to Cease Daily Operations

Bankrupt U.S.-based bitcoin mining firm Giga Watt has been forced to shut down day-to-day operations.

The firm sent an email to customers on Tuesday, a copy of which was obtained by CoinDesk, which states that, while it had continued to operate in the two months since the bankruptcy filing, “at present, both access and power to the facilities in which Giga Watt operates have been closed to the company.”

Andrey Kuzenny, a director owning a more than 10 percent stake in Giga Watt and an admin of the firm’s official Telegram channel, confirmed to CoinDesk that the email was sent by the firm.

When asked for further details, Kuzenny told CoinDesk he could not comment for legal reasons.

The email went on to say that those who have completed their know-your-customer verification will be able to withdraw any cryptocurrency remaining in their wallets until March.

One user on the firm’s official Telegram channel asked Kuzenny if the firm can refund holdings of Giga Watt’s WTT token “with the original investment BTC,”  to which Kuzenny replied: “No, it’s not possible.”

Giga Watt will also be returning some mining equipment back to customers, according to the email. Those customers who had equipment removed before the lockout will be notified via email within the next two weeks. Others with equipment still trapped in the facilities will not be notified and any further information “will not be known, or available, pending current legal proceedings,” according to the letter.

The company pledged to keep customers updated if and when the situation changes.

Giga Watt filed for Chapter 11 bankruptcy at a court in the Eastern District of Washington back in November. According to court documents seen by CoinDesk at the time, the firm owes its biggest 20 unsecured creditors nearly $7 million, including around $800,000 to electricity providers.

Within a week of its initial bankruptcy filing, the firm hiked the value of its assets in a revised statement to $10 million and $50 million, far higher than the previously stated $0–$50,000 range.

Bitcoin mining farms image via Shutterstock 

Comments are closed.