Mawson Infrastructure Group Inc. filed an adversary proceeding in the United States Bankruptcy Court for the District of Delaware, targeting W Capital Advisors Pty Ltd, Marshall Investments GCP Pty Ltd, Rayra Pty Ltd, and related parties. The lawsuit seeks attorneys’ fees, costs, and damages for the alleged bad‑faith filing of an involuntary Chapter 11 petition that the company claims caused a one‑day market‑capitalization loss of roughly $23 million, reputational harm, and millions in legal expenses.
The complaint alleges that the petitioning creditors coordinated a campaign that culminated in the filing of the involuntary petition in December 2024. The petition was dismissed with prejudice on November 4, 2025, after a Delaware judge ordered the creditors to post a $1.5 million bond and pay $204,000 in contempt fines for continuing legal action overseas. The dismissal preserved Mawson’s right to pursue civil remedies under 11 U.S.C. § 303(i).
Mawson’s financial performance has improved markedly since the period surrounding the involuntary petition. In the third quarter of 2025, the company reported revenue of $13.2 million, up 7 % from $12.3 million in the same quarter of 2024, and gross profit of $8.6 million, a 98 % increase from $4.3 million. Net income rose to $0.3 million from a $12.2 million loss in Q3 2024, reflecting stronger demand for its AI, high‑performance computing, and digital‑asset infrastructure services. The company also regained compliance with Nasdaq’s $1.00 bid‑price requirement on December 16, 2025, and is working to meet the stockholders’ equity rule.
Liquidity remains a concern, with cash and cash equivalents below $6 million and a current ratio that has historically been below one. The lawsuit’s potential recovery could provide a financial cushion to address short‑term obligations and reduce reliance on external financing. Mawson’s management has emphasized that the action is intended to deter future abuse of the bankruptcy process and protect shareholder value.
Interim CEO and General Counsel Kaliste Saloom stated that the filing is a “necessary step to hold the responsible parties accountable for their egregious misconduct” and that the company is committed to pursuing full recovery. The lawsuit underscores Mawson’s broader strategy of diversifying beyond Bitcoin mining into AI and HPC markets, where it has launched a GPU pilot program on a decentralized AI network and is expanding its data‑center footprint.
If the court awards damages, Mawson could recover the estimated $23 million market‑cap loss and additional legal costs, potentially improving its balance sheet and providing resources to accelerate its expansion into high‑margin AI services. The outcome will also signal to creditors and the market the extent to which Mawson can enforce its rights against perceived bad‑faith actions.
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