Reporter with Silicon Hills News

Ravi Iyengar Founder & CEO of Cointerra

Ravi Iyengar
Founder & CEO of Cointerra

CoinTerra, once recognized as one of Austin’s fastest growing startups, has filed for Chapter 7 liquidation bankruptcy.

The Austin-based bitcoin machine manufacturer filed for bankruptcy in Austin on Jan. 24, listing between $10 million and $50 million in assets and liabilities.

“The move comes soon after CoinTerra became the target of a lawsuit launched by C7 Data Centers, a data center colocation services provider based in Utah,” according to an article in CoinDesk. “C7 is seeking repayment on roughly $1.4m in unpaid service fees, as well as nearly $4m in damages.”

Ravi Iyengar, a former lead CPU architect at Samsung, founded CoinTerra in May of 2013 and served as its Chief Executive Officer. The company made the TerraMiner IV, a high performance computer which mined Bitcoins and sold for around $6000. The company raised about $2.2 million in funding, according to documents filed with the U.S. Securities and Exchange Commission.

Silicon Hills News did this profile of CoinTerra last year. In the comments, some customers complained they never received the computers they ordered.

Bitcoin is a global digital currency created in 2009. High powered computers are used to “mine” or create new bitcoins.

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