The American mining company Giga Watt filed bankruptcy documents in a court of the Eastern District of Washington, CoinDesk reports.
Giga Watt's lenders include approximately 20 companies, including utilities and electricity providers. The total liabilities range from 10 to 50 million US dollars. At the same time, the company's assets are estimated at only $ 50 thousand.
According to Crypto News, in August 2018, the company reduced its staff from 63 to 16.
Giga Watt was founded by bitcoin miner Dave Carlson. In May, the company held a tokensale during which it managed to raise $ 22 million.
The company raised funds for the launch of mining and the creation of a vault for cryptocurrency. In exchange for the investment, investors should have received either Giga Watt tokens or mining equipment. Tokens would give investors exclusive rights to use the company's premises without a lease for 50 years.
However, at the beginning of this year, it became known that a class action was filed against Giga Watt, in which the company was accused of conducting an unregistered offer of securities. Also, the lawsuit states that the construction deadlines were not met, and promises to refund the funds were not fulfilled.