Business

Ed Drake

Giga Watt woes continue: Bankrupt miner forced to shut down operations

Embattled cryptocurrency miner Giga Watt has been dealt another serious blow, with the news that the firm has been forced to shutter its day-to-day operations with immediate effect.

An email from the company sent this week, which was subsequently confirmed as genuine by one of the firm’s directors, told customers, “At present, both access and power to the facilities in which Giga Watt operates have been closed to the company.”

Giga Watt filed for bankruptcy protection two months ago at a court in Washington, yet had continued trading until the latest revelations.

More worryingly for investors, a spokesperson for the company suggested it would now not be possible to refund those who had invested in the firm’s now worthless WTT token.

The email stated that customers who had completed KYC processes would still be able to withdraw any balances until March, allowing several weeks for affected customers to access their funds before it’s too late.

The firm also intends to return some mining equipment to its customers, covering equipment removed by the company before the lockdown currently restricting its operations. Those with equipment still locked inside Giga Watt’s facilities will not be notified further, with the email suggesting information “will not be known, or available, pending current legal proceedings.”

When Giga Watt was declared bankrupt, it was revealed that the firm’s unsecured creditors were owed in excess of $7 million, with electricity providers on the hook for some $800,000. At this stage, their prospects of recovery look doubtful.

The development is the latest twist in what has been a torrid few months for the company, effectively bankrupted as a result of crashing BTC prices.

It comes amidst challenging conditions for mining companies in general, with others closing facilities, laying off staff, and even switching to focus on other industries in light of dwindling profitability in the sector.

For investors and customers alike, the latest news makes for further grim reading from a firm once considered a rising star of the industry. With its rapid demise, the situation today looks even bleaker, both for the firm’s creditors and stakeholders more generally.

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