SETL, a London-based blockchain startup has filed for insolvency in the United Kingdom, a development that has sent chills down the spine of blockchain proponents. As originally reported by the crypto news outlet, Coindesk, the insolvency notice filed in the London Gazette on Thursday, March 7.
Launched in 2015, SETL is a blockchain infrastructure company focused on tailoring blockchain solutions to the financial-services industry. Some of its blockchain products include the OpenCSD and Izines.
SETL appeared to be the poster child of the blockchain era attracting investment from is the world’s largest cooperative financial institution Credit Agricole and Citi. The blockchain infrastructure firm which was co-founded by City of London trading veteran Peter Randall recently added Christian Noyer a former Bank of France governor on its board.
But it turns out, all is not well with the project.
In a statement published on Thursday, March 7, the company announced a corporate reorganization in which it appointed Quantuma LLP to administer the company.
The statement read:
“…the board…has today appointed Quantuma LLP as an independent administrator. Quantuma’s role will be to help shape the future structure, enable the company to balance its strategic infrastructure holdings and continue its software development activities on a business as usual basis.”
“Now that the CSD is operational, the organization can move forward with the next phase of its corporate development plan. Having made an early investment in the development of ID2S, SETL Development Ltd recognizes that as an early stage technology firm it is not sufficiently placed to contribute the capital required.”
SETL wrote that “it is now seeking to place its ID2S holding with a larger financial services firm, one better placed to provide the capital required to support the growth trajectory.”
“I am absolutely satisfied that this is the most positive step for the company and will form the basis of a strong future,” Anthony Culligan, the co-founder, and largest shareholder said of the development.
SETL has raised a total of $39 million in funding over three rounds. As Smartereum reported, the firm raised funds from investors including Citi and Computershare in order to work on “a number of revenue-generating projects” Last October, the firm won a license to operate from the French securities operators to operate a blockchain-enabled central securities depository system.