Crypto miner Mawson pushed into bankruptcy court by creditors
Mawson Infrastructure Group, a company known for its role in building data centers for Bitcoin miners and artificial intelligence, is under attack from creditors.
With its cash reserves falling below $6 million, creditors in Australia, including W Capital Advisors and Marshall Investments, have filed a Chapter 11 petition in Delaware.
The creditors claim the mining firm owes over 13.5 million Australian dollars ($8.7 million). The filing, made on Wednesday, wants to legally push the company into bankruptcy.
While Mawson fights for its survival, its stock surged 54% in after-hours trading following confusion over whether the company had already filed for bankruptcy. Mawson clarified the situation in a statement, denying any voluntary filing and insisting it “expects to continue to operate as usual.”
Manning’s role in Mawson’s issues and ongoing investigations
The battle is about more than just unpaid debts. Mawson has accused W Capital Advisors of having questionable ties to James Manning, a former executive and board member at the company.
Mawson claims Manning’s involvement raises serious ethical concerns, as W Capital is acting as trustee for the W Capital Advisors Fund, a creditor pursuing the Chapter 11 case.
The company’s audit committee is currently investigating Manning’s dealings with W Capital and other related entities. Allegations include self-dealing and interference in business operations, adding more complexity to the legal drama.
Manning’s ties to Vertua Property Inc. have also come under scrutiny. Vertua, another company connected to Manning, faces accusations of breaching contracts and interfering with Mawson’s business relationships.
Mawson filed a complaint against Vertua in Pennsylvania’s Court of Common Pleas. The company accuses Vertua, its landlord for a Sharon, PA property, of breaching their lease agreement, wrongfully terminating the lease, and causing significant disruption to its business.
Mawson is seeking damages, reinstatement of the lease, and reimbursement for litigation costs in this case, filed under docket number 2024-2332.
The company argues that the Chapter 11 petition is part of a broader strategy to pressure it during ongoing litigation, so it is pushing back hard.
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Crypto miner Mawson pushed into bankruptcy court by creditors
Mawson Infrastructure Group, a company known for its role in building data centers for Bitcoin miners and artificial intelligence, is under attack from creditors.
With its cash reserves falling below $6 million, creditors in Australia, including W Capital Advisors and Marshall Investments, have filed a Chapter 11 petition in Delaware.
The creditors claim the mining firm owes over 13.5 million Australian dollars ($8.7 million). The filing, made on Wednesday, wants to legally push the company into bankruptcy.
While Mawson fights for its survival, its stock surged 54% in after-hours trading following confusion over whether the company had already filed for bankruptcy. Mawson clarified the situation in a statement, denying any voluntary filing and insisting it “expects to continue to operate as usual.”
Manning’s role in Mawson’s issues and ongoing investigations
The battle is about more than just unpaid debts. Mawson has accused W Capital Advisors of having questionable ties to James Manning, a former executive and board member at the company.
Mawson claims Manning’s involvement raises serious ethical concerns, as W Capital is acting as trustee for the W Capital Advisors Fund, a creditor pursuing the Chapter 11 case.
The company’s audit committee is currently investigating Manning’s dealings with W Capital and other related entities. Allegations include self-dealing and interference in business operations, adding more complexity to the legal drama.
Manning’s ties to Vertua Property Inc. have also come under scrutiny. Vertua, another company connected to Manning, faces accusations of breaching contracts and interfering with Mawson’s business relationships.
Mawson filed a complaint against Vertua in Pennsylvania’s Court of Common Pleas. The company accuses Vertua, its landlord for a Sharon, PA property, of breaching their lease agreement, wrongfully terminating the lease, and causing significant disruption to its business.
Mawson is seeking damages, reinstatement of the lease, and reimbursement for litigation costs in this case, filed under docket number 2024-2332.
The company argues that the Chapter 11 petition is part of a broader strategy to pressure it during ongoing litigation, so it is pushing back hard.
From Zero to Web3 Pro: Your 90-Day Career Launch Plan
Read More