CoinTerra to Users: “We Cannot Issue Any Payments”

By January 8, 2015Bitcoin Politics
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CoinTerra to Users: “We Cannot Issue Any Payments”

Bitcoin mining firm CoinTerra has put many of its customers on edge.  While the company website is remaining operational, many users are receiving emails that the firm is unable to issue any payments following a default on its “secured notes,” an alleged form of debt.

A Reddit user posted a copy of the email online:

“The company has defaulted on its secured notes.  The note holders have senior, secured and, we believe, perfected liens on all of CoinTerra’s assets, including servers.  We have proposed a plan to the note holders.  However, at this point we do not know how they are going to react to our proposal.  The note holders are evaluating their options.  Until this is resolved, CoinTerra will be unable to make further payments.”

The email concludes with the following statement:

“What this means is that we cannot issue any payments to customers at this time.  Rest assured we will let you know if this situation changes or if there are any relevant new developments but, for now, we have no further information.”

Several social media enthusiasts have posted their thoughts on Reddit to express their anger and frustration with the company, which has been the subject of various problems and legal issues over the last year including a class-action lawsuit filed in mid-2014.

What do you all think about CoinTerra?  Post your thoughts and ideas below.

A Reddit user posted a copy of the email online:

“The company has defaulted on its secured notes.  The note holders have senior, secured and, we believe, perfected liens on all […]

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