We previously reported that blockchain startup Symbiont entered Chapter 11 bankruptcy protection in December 2022. After a rescue attempt failed, Symbiont has now started a liquidation process, with its intellectual property formally put up for sale by the company’s Chief Restructuring Officer (CRO).
The company had a raft of big name clients and raised invoices to SWIFT and State Street as recently as January. SWIFT was using its technology in a corporate actions trial. The company developed a DLT-based solution for indexes for Vanguard, which has been used for years. And it created a system for managing forex derivative margins, which State Street Digital and Vanguard were exploring. Its technology is generally well regarded.
Symbiont triggered the bankruptcy process because it was unable to repay a $2.3 million secured loan to LM Funding.
In January, it looked like the company received a lifeline with a non binding letter of intent to provide $6 million in interim funding from Morse Labs, a Symbiont client associated with Symbiont’s Chairman. A legal letter stated the company had a tech team that had been using Symbiont technology and working with the tech team for around two years. However, it failed to meet a tough funding deadline.
The asset sale is being managed by Laura Marcero, chief restructuring officer, who works for Huron Consulting Services.