The bitcoin mining company CoinTerra filed for chapter 7 bankruptcy in Austin, Texas late last week resulting in a 2 percent slump in bitcoin prices. The company faced a lawsuit from C7, a Utah based datacenter, in addition to the hundreds of creditors that CoinTerra says it will be unable to pay back.
“At this point in time, things are kind of frozen. Until the next steps are clear, you know, there’s not a whole lot progress we can make,” said Ravi Iyengar, CEO of CoinTerra in an interview with CoinDesk.
CoinTerra was established in August of 2013 to provide high standards of mining expertise. In the beginning CoinTerra was able to raise $2 million in investment funds, but subsequent years of operation has shown that the company was unable to deliver on the promises it made to its investors, resulting in its current financial woes. Creditors listed by the mining company include hundreds of investors including Wells Fargo.
Read More- Bitcoin Rate Falls 2% As Mining Firm CoinTerra Files For Bankruptcy (International Business Times, Jerin Matthews)