It was just a few short weeks ago that Coin Fire reported about financial issues inside mining manufacturer and cloud mining operation CoinTerra. At the time of our first reporting, an unnamed source told Coin Fire,
Yes, the rumors and rumblings on the Internet and reddit are true. CoinTerra is on the verge of falling apart. Before going to our holiday break, the talk inside our company was that we would be collapsing, but after coming back from our holiday break, apparently the company attorneys have found a potential solution but it will likely result in us declaring a bankruptcy. I’m not familiar with the intimate details, but I do know we may not have jobs here much longer.
At the time, multiple sources inside the company were telling Coin Fire editors and contributors that the company was on the verge of collapsing. Having fallen behind on bills and defaulting on payments to customers, CoinTerra was looking for the best possible legal solution to resolving the issues.
It now appears that filing for Chapter 7 bankruptcy was the best outcome for the company and as documents obtained by CoinDesk now show, the company has reached a point of no return with the only possible outcome being a bankcrupcy.
Coin Fire will continue to follow this story.