Crypto Mining Firm Giga Watt Succumbs to Bankruptcy, Ceases All Operations

Jan 17, 2019 at 01:30 Update Date :Jan 17, 2019 at 01:30 UTC

Giga Watt, a major crypto-mining provider, has declared bankruptcy and has been forced to cease all operations from immediate effect.

Although it had initially filed for bankruptcy back in November 2018, in an email to its clients on Tuesday, Giga Watt notified them of withdrawal of access and power to all facilities related to the firm. It also issued a notification in this regard to users having cryptocurrency in their trading wallets, which could be withdrawn until March via the Giga Watt dashboard.

The notification email from Giga Watt also mentioned the return of some mining equipment back to its customers. The email stated that those who had their equipment removed before access to facilities was revoked and a total shutdown had been initiated, would be notified within the next two weeks and would be provided with its tracking data.

The bankrupt mining firm also made it clear in a reposted note of their email that if a client did not receive an email, the indication is that their mining equipment would remain in lockdown and any information or response to queries in this regard would not be possible until legal proceedings had been carried out, which would set the extent of how much information can be shared with its clients.

Giga Watt, which started as a successful venture in September 2017, had claimed to offer Bitcoin miners the most affordable electricity in the world.

The way Giga Watt generated revenue was by either providing its clients with crypto mining equipment, who in return would pay for its maintenance through their mining operations or by hosting miners sent by their customers and deducting some portion of their daily mining earnings by validating Bitcoin or Ethereum blockchains.

Giga Watt has promised to keep their customers notified on any updates at their end. The firm has only a few employees operating at the moment, most having been laid off with those remaining back being charged with duties pertaining to assisting customers with cryptocurrency withdrawals, verifications and other queries.  

According to legal documents, Giga Watt reportedly owes more than $7 million to its creditors, with nearly $ 1 million to electricity providers.

The Giga Watt shutdown comes on the back of recent reports of Bitmain, a major Chinese crypto mining player, putting a stop to its operations in Rockdale, Texas. Bitmain was also involved in a major employee lay-off, keeping just a handful of staff to oversee very basic operations, very similar to what is being observed at Giga Watt.

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