Mining company Giga Watt initiated bankruptcy proceedings

Mining company Giga Watt initiated bankruptcy proceedings

Recently, the largest US mining company filed for bankruptcy, admitting its inability to pay its debts. According to court documents, Giga Watt's assets are valued at $50,000, its debts are nearly $50 million, and it has more than 50 creditors awaiting payment of numerous debts.

In addition to bankruptcy, the mining company is also facing foreclosure ordered by the Douglas County Court.

Giga Watt Managing Director George Turner claims the bankruptcy filing was filed by the firm's board of directors without his knowledge.

Giga Watt, formerly known as MegaBigPower, was founded in 2012 by former Microsoft software engineer Dave Carlson. In 2017, the company held an ICO. The company's Giga Watt tokens were intended to raise funds to build a mining farm using "more than 30 megawatts of electricity" as well as a private power substation.

In March 2017, Dave Carlson stated that the company did not need to register with the U.S. Securities and Exchange Commission  to conduct an ICO. In March 2018, law firm Silver Miller initiated an ICO lawsuit in federal court, alleging that Giga Watt violated securities laws by selling investments in its crypto mining business without registering with the appropriate authorities.

Carlson left his position as CEO in August of this year.



According to cointelegraph.com

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