A once-rebranded blockchain finance firm now finds itself navigating the unforgiving terrain of bankruptcy court. Archblock filed for Chapter 11 protection in Delaware, reporting more than $100 million in liabilities against less than $10 million in assets — a financial imbalance as stark as a ship listing heavily in open water.
The San Francisco-based company, formerly known as TrustLabs, ZenTrusts and Win The Game, sought bankruptcy relief late Friday, marking the latest tremor in a crypto sector still grappling with legal battles and liquidity shocks.
Celsius Lawsuit Casts Long Shadow
The filing comes months after cryptocurrency lender Celsius Network Ltd. sued Archblock in October, accusing the blockchain financial technology company of orchestrating what it described as a “deliberate multimillion-dollar fraud.”
In its complaint, Celsius alleged that Archblock wagered customer deposits on high-risk investments — a strategy likened to doubling down at a volatile gaming table. When Celsius attempted to recover funds, Archblock allegedly refused to return the money, according to court filings.
The allegations added fresh tension to an industry already battered by bankruptcies, enforcement actions and shifting regulatory scrutiny.
