Giga Watt, a Bitcoin mining company based in Washington, has officially filed for bankruptcy as it ends a tumultuous year. The company was marketed as a host service for cryptocurrency miners but was plagued with problems from the start. In addition to the fact that the cryptocurrency markets have been bearish for most of 2018; the company also faces two class-action lawsuits alleging wire fraud.
Giga Watt founder Dave Carlson
There were certainly warning signs over the past several months, considering that the CEO and founder, Dave Carlson, left the company in August. In addition, Giga Watt laid off the vast majority of its staff, reducing its employees from 70 to only 13.
Giga Watt Crypto Mining Pod At Pangborn Airport Business Park
Giga Watt was planning to construct 17 cryptocurrency mining “pods” to miners. The first pod was launched with much fanfare at Pangborn Airport Business Park. The site was intended to take advantage of cheap Northwest hydropower.
While the first pod was completed, it appears as though the company owes almost $70 million to creditors, not to mention that the company also owes money to local Washington contractors such as Neppel Electric, Talos Construction, and Schmitt Electric.
Another update from the Pangborn site. All of the trenches are dug, substation soon to be approved.https://t.co/GkSPTtqe3Q
— Giga Watt Mining (@gigawatt_mining) May 25, 2018
Giga Watt often took to Twitter to post about its progress regarding its facilities, but that doesn’t seem to have comforted investors. Giga Watt’s initial coin offering (ICO) raised over $20 million, and investors have grown impatient with how long the company has taken to reward them with promised Giga Watt tokens. The two lawsuits from investors allege that first, the company ignored securities laws in its offering, and secondly, that the company is guilty of racketeering and wire fraud.