Judge sees 'smoke' in Chapter 11 miner case, orders $1.5M bond

Core Viewpoint - A Delaware bankruptcy judge has ordered creditors of Mawson Infrastructure Group Inc. to post a bond and pay fines due to potential bad faith in filing an involuntary Chapter 11 petition against the company [2][4]. Group 1: Legal Proceedings - The judge found sufficient evidence to question the legitimacy of the involuntary Chapter 11 petition, suggesting possible collusion with former CEO James Manning [2]. - Creditors were found in contempt for pursuing liquidation proceedings in Australia, violating the automatic stay triggered by Mawson's U.S. bankruptcy [3][4]. - The creditors are required to post a $1.5 million bond and pay $204,000 in contempt fines [4]. Group 2: Company Background - Mawson Infrastructure Group is a cryptocurrency mining company focused on digital asset infrastructure and energy-efficient bitcoin mining, founded in 2019 in Sydney, Australia [4]. - The company expanded operations to the U.S. and other regions, positioning itself as a "digital infrastructure provider" [4]. Group 3: Allegations Against Former CEO - Mawson has alleged that the bankruptcy petition is part of a vendetta by former CEO James Manning, who served from the company's founding until May 2023 [6]. - Allegations include Manning engaging in "self-dealing," with over $11 million in payments to a shipping company that Mawson claimed it did not need [7]. - The company reported a 75% drop in stock price since the involuntary petition was filed and faces potential delisting from Nasdaq [9].