Bankrupt Bitcoin Miner Giga Watt Forced to Cease Daily Operations

Bankrupt bitcoin mining firm Giga Watt has said it's shutting down operations after its power was cut and facility access was blocked.

Jan 16, 2019 at 10:10 a.m. UTC
Updated Sep 13, 2021 at 8:48 a.m. UTC

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 

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
Indian Central Bank Says Cryptos Could Lead to "Dollarization" of Economy: Report

RBI officials said cryptocurrencies could undermine the central bank's capacity to regulate flow of money.

RBI officials said cryptocurrencies could undermine the central bank's capacity to regulate flow of money.

2
Nigeria’s SEC Affirms All Digital Assets Are Securities in New Rulebook

Rules look to clarify crypto’s role in the economy by providing a regulatory framework.

Rules look to clarify crypto’s role in the economy by providing a regulatory framework.

3
First Mover Asia: Singapore’s Regulators Will Be Eyeing Local Crypto Companies After Terra Collapse; Bitcoin Rebounds

Terraform Labs, the Singapore-registered company behind the Terra protocol, doesn’t have a permanent office in the city-state; most major cryptos spent Sunday in the green.

Terraform Labs, the Singapore-registered company behind the Terra protocol, doesn’t have a permanent office in the city-state; most major cryptos spent Sunday in the green.

4
At Nationals Ballpark, Terra’s Bad Week Never Happened

Terra’s pricey Nationals sponsorship hasn’t made an impact on “Terra Club” workers and fans.

Terra’s pricey Nationals sponsorship hasn’t made an impact on “Terra Club” workers and fans.