Australian blockchain company files for bankruptcy month after layoffs

The Australia-based blockchain company founded in 2015, Everledger, filed for bankruptcy after failing to provide the expected investors’ funds, according to a report by SmartCompany.

The blockchain-powered platform was developed to track the origin of luxury items, top-notch wine, diamonds, and even high-end fashion, among other high-value assets. 

Moreover, Everledger raised $20 million in its Series A round led by Tencent, the Chinese tech giant that owns WeChat, per the report. In total, the Brisbane-based firm accumulated more than $51 million since 2015.

According to a February report, Tencent has also ditched its plans to create Virtual Reality (VR) hardware for the metaverse. The project, projected to be completed in around five years, lacked financial applications, per the report.

Furthermore, it also secured a $3.5 million fund “through the UK Government’s Future Fund in 2021,” per the report.

However, the company’s latest funding did not happen, per SmartCompany. According to the Chinese reporter Colin Wu, Everledger sent layoff notices to its employees on March 31. 

Everledger joins the list of collapsed blockchain and crypto companies that failed to survive in the middle of the bear storm. Other industry firms that have filed for bankruptcy are FTX, BlockFi, Voyager, and Celsius Network.