Major crypto firm files for Chapter 11 bankruptcy

Core Insights - The crypto market is experiencing a severe downturn, leading to multiple enterprise shutdowns and layoffs, including Bit.com and DappRadar [1] - Archblock, formerly known as TrustToken, has filed for Chapter 11 bankruptcy, reporting liabilities exceeding $100 million against assets of only $10 million [2][3] Company Overview - Archblock was founded in 2017 and launched the TrueUSD stablecoin in 2018, transitioning to focus on institutional capital in decentralized finance (DeFi) after rebranding in 2022 [2] - The company filed for Chapter 11 bankruptcy protection on February 6, 2023, in the U.S. Bankruptcy Court for the District of Delaware [3] Financial Situation - Archblock's bankruptcy filing indicates liabilities of over $100 million and assets of barely $10 million, highlighting a significant financial imbalance [3] - The filing mentions Alameda Research as a potential creditor with an unsecured claim of $8.5 million [4] Legal Issues - The bankruptcy filing also references Celsius Network as a creditor involved in a dispute, with Celsius having previously sued Archblock for alleged fraud [5] - The lawsuit claimed that Archblock misrepresented its TrueCurrency tokens as fully collateralized while misusing customer funds for risky investments [5]