Archblock Filed for Chapter 11 as Crypto Dispute Intensifies

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Archblock Pushes Back

Archblock has forcefully denied Celsius’ claims in its formal response, rejecting accusations of misconduct. Instead, the company pointed to complications involving third parties, including Prime Trust LLC. Prime Trust’s parent company sought bankruptcy protection in 2023, a collapse that sent ripples through digital asset custody and payment networks.

By shifting focus to outside actors, Archblock framed the dispute as a domino effect within a fragile ecosystem rather than a deliberate scheme.

Bankruptcy Case Assigned in Delaware

Archblock’s Chapter 11 case has been assigned to U.S. Bankruptcy Judge Craig T. Goldblatt, who will oversee the proceedings as the company attempts to reorganize under court supervision.

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The filing lists liabilities exceeding $100 million, contrasted with assets of less than $10 million — a chasm that underscores the scale of the financial strain facing the firm.

Representatives for Archblock did not immediately respond Monday to requests for comment regarding the bankruptcy or the ongoing litigation.