Federal Court Dismisses Appeal in Giga Watt Bankruptcy Case
On Friday, April 25, 2025, the United States District Court for the Eastern District of Washington granted a motion to dismiss an appeal filed by Andrea Sharp in the bankruptcy case of Giga Watt Inc. Chief United States District Judge Stanley A. Bastian ruled that the appeal lacked jurisdiction and standing due to its untimely filing.
Giga Watt Inc., a company focused on large-scale cryptocurrency mining, launched the Giga Watt Project, which involved selling WTT Tokens. These tokens allowed buyers to access electricity from Giga Watt’s facility for cryptocurrency mining. The token sales generated over $22 million, held in an escrow account managed by Perkins Coie LLP. After issuing refunds to some buyers, Perkins transferred $21.6 million to Giga Watt entities, depleting the escrow account by February 22, 2018.
On November 19, 2018, Giga Watt filed for Chapter 11 bankruptcy in the Eastern District of Washington. Mark D. Waldron was appointed as the Chapter 11 Trustee on January 24, 2019. On November 30, 2020, Waldron initiated an adversary proceeding against Perkins, alleging that the firm’s handling of the escrow funds breached fiduciary duties, contributing to Giga Watt’s financial collapse. The Bankruptcy Court approved the appointment of Potomac Law Group as special litigation counsel for the proceeding on December 15, 2020.
On December 16, 2020, a class action lawsuit was filed in the district court by WTT Token purchasers, including Sharp. A settlement agreement was reached, resolving both the adversary proceeding and the class action. Under the agreement, Perkins agreed to pay $3 million to the bankruptcy estate and $4.5 million to the class members. The Bankruptcy Court approved the settlement on October 4, 2023, and the district court granted preliminary approval on February 2, 2024. Class members had the opportunity to object or opt out but did not, leading to final approval on May 23, 2024.
The settlement defined released claims as any actions or demands against the bankruptcy estate, Waldron, and their agents or attorneys, with class members, including Sharp, waiving such claims. On October 2, 2024, Waldron filed objections to 283 claims against the bankruptcy estate, arguing they were released under the settlement. The Bankruptcy Court granted these objections on January 30, 2025.
Sharp filed a notice of appeal on March 5, 2025, challenging the Bankruptcy Court’s order. Waldron moved to dismiss the appeal on March 12, 2025, citing its untimeliness under Federal Rule of Bankruptcy Procedure 8002(a)(1), which requires appeals to be filed within 14 days of the order. The district court found no record of an extension request or excusable neglect, as required for late filings. Consequently, the court granted the motion to dismiss, directing the Clerk of Court to close the case.
A copy of the original filing can be found here.
