After just three months of existence, the enterprise-scale mining startup Alydian, which is connected to the cryptocurrency service CoinLab, has filed for bankruptcy protection, declaring less than $50,000 in assets.
According to the Wall Street Journal, Alydian Inc. filed for Chapter 11 protection in the United States bankruptcy court in Seattle, on Friday (1). However, the 10-page document didn’t explain why the company is claiming grounds for bankrupcy or how it will pay its debts.
The court filing was signed by Peter Vessenes, the CEO of CoinLab, the Bitcoin-related company and business incubator that created Alydian in August, advertising it as a company that would provide powerful mining solutions for companies and individual clients.
According to Alydian’s court papers, the startup owes $600,000 to CoinLab, as well as $3 million to New Zealand’s XRay Holdings LLC and $40,000 to Peter Vessenes.