Last Updated on May 8, 2023 by Bitfinsider

Everledger, an Australian blockchain business, has filed for bankruptcy after failing to find additional funding from an unidentified backer.

The AFR reported on May 8 that Everledger, a company that utilizes blockchain to trace the origins of diamonds and other products, was unable to complete its most recent investment round.

Everledger was then covertly placed into voluntary administration because the company was unable to pay its debts. On March 31, layoff notices were issued to every employee of Everledger, and on April 24 Vincents Chartered Accountants was chosen as the administrators. The first creditors’ meeting was slated for May 8.

Leanne Kemp, the founder of Everledger, claims that the management of the business was compelled to make this choice in order to safeguard the interests of shareholders.

Kemp stated, “The second tranche of funds due to Everledger did not materialize. As a result, we understand that there are external reasons and demands on this investor, which has caused Everledger was placed in a difficult and unexpected position.

The founder said that one of the important important decisions was an instant staff layoff and to maintain the firm under the hands of administrators while its affairs were completed.

Kemp continued by stating that Everledger has in fact designed its most recent investment to be the final external capital round necessary for profitability. She stated, “I would not suggest Everledger was a ‘cash burning’ startup,” and continued,

Even though Everledger has the support of significant investors like the federal government and the Chinese internet giant Tencent, the company is now facing insolvency proceedings.

With a $20 million investment, Tencent took the lead in Everledger’s Series A round in 2019. The AFR claims that in 2021, Everledger also received $3.5 million from the Future Fund of the British government. Everledger is said to have attracted $51.7 million in outside investment during the last eight years.

Everledger is one of the leading global businesses that invented blockchain-based supply chain tracking technologies. It was founded in 2015. Some of these businesses, like the American IT giant IBM and the Danish logistics company Maersk, have discontinued their blockchain supply chain tracking services, blaming a lack of “global industry collaboration.”

The idea of blockchain-based supply chain systems is still blooming in various regions of the world despite significant sector closures. As a result, Global Shipping Business Network, based in Hong Kong, keeps developing supply chain products based on blockchain and is optimistic about blockchain’s potential to become an essential logistics tool in the future.