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Bitcoin Mining Firm CoinTerra Files for Chapter 7 Bankruptcy

(@mpmcsweeney) | Published on January 27, 2015 at 16:41 BST
News

Bitcoin mining company CoinTerra has filed for bankruptcy.

CoinTerra has between $10m and $50m in assets, with liabilities within the same range, according to court documents. The firm has filed for Chapter 7 bankruptcy protection, meaning it is likely to liquidate all assets in its bid to repay secured creditors.

CoinTerra stated that it would be unable to repay unsecured investors and named hundreds of creditors in its filing, which was submitted on 24th January.

The move comes soon after CoinTerra became the target of a lawsuit launched by C7 Data Centers, a data center colocation services provider based in Utah. C7 is seeking repayment on roughly $1.4m in unpaid service fees, as well as nearly $4m in damages. Indications that the company was experiencing debt problems first emerged earlier this month.

C7 is among those named in an extensive list of creditors, which includes US-based bank Wells Fargo and data services provider CenturyLink, the latter of which entered into an agreement with Cointerra in July of last year.

The list features a number of private citizens from both the US and abroad, as well as a number of companies that did business with the Austin, Texas, based mining startup.

CoinTerra Bankruptcy

CoinTerra's website features a brief acknowledgement of the bankruptcy, referring users to the bankruptcy case filing and the website for the US bankruptcy court in Texas's Western District. A creditor meeting has been scheduled for 27th February, according to the filing.

The Chapter 7 bankruptcy filing suggests that negotiations between CoinTerra and its list of creditors did not result in a solution that would see the company continuing to operate.

In a recent interview, CoinTerra CEO Ravi Iyengar said that the firm's future hinged on the outcome of those discussions.

CoinDesk reached out to CoinTerra for comment, but did not receive a response by press time.

CoinTerra's bankruptcy filing can be found below:

Cointerra Bankruptcy Filing

Images via Cointerra, Shutterstock

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