🔗New Chapter 11 Bankruptcy Filing - Archblock LLC🔗

Blockchain something-or-other files to resolve heaps of disputes, wind down.

On February 6, 2026, SF-based Archblock LLC (“Archblock”), TrustToken, Inc. (“TrustToken”), TrueCoin LLC (“TrueCoin”) and three affiliates (the foregoing, collectively, the “debtors”) filed chapter 11 bankruptcy cases in the District of Delaware (Judge Goldblatt). If not patently obvious from those names (😒), the debtors are in the crypto industry, each with its own role. Per first day declarant and Archblock general counsel (???) Michael Bland:*

📍Archblock is a ‘17-founded “… financial technology company leveraging blockchain infrastructure with the objective of building an end-to-end asset tokenization platform …,”

📍TrustToken was formed by Archblock “… to raise capital through an exempt offering of Simple Agreements for Future Tokens (‘SAFTs’) in 2017 and 2018, issuing native cryptocurrency TRU tokens to early supporters,” with proceeds used to fund the development of the platform, and

📍TrueCoin is an issuer of “stablecoins,” which are “… meant to maintain a stable value relative to an underlying currency or asset.” Depending on the stablecoin in question, the TrueCoin’s underlying currencies were USD, HKD, GBP, AUD, and CAD (the stablecoins, collectively, “TrueCurrency”).

Source: Tenor

Johnny still thinks crypto is a scam.

Setting aside the bleeding-edge “tech,” it turns out crypto debtors run into humdrum, classic issues. To explain, here’s Mr. Bland again:

“By mid-2020, Archblock faced a strategic and financial inflection point. The core tokenization platform promised to SAFT purchasers had not progressed at the expected pace due to regulatory concerns and business timing issues. Other tokenization competitors had launched earlier than Archblock and were also not gaining traction on either the supply or demand sides of the business. During this time, Archblock was operating with approximately $10 million in assets and a monthly burn rate of roughly $1 million.”

Delayed output, competition, and writing checks your a$$ can’t cash.

So the debtors deployed a time-honored strategy of new leadership, downsizing, extending runway, and looking to sell the one bright spot of their biz, the TrueCoin’s USD-denominated stablecoin biz (“TUSD”), which happened to use Aria Commodity Finance Fund (“Aria Fund”) — “… a low-risk, short-term investment fund that provided financing for agricultural transportation …” (🤦) — to manage the $97mm in cash that TrueCoin had “invested” into the underlying coins.