Australian blockchain startup Lygon has entered liquidation just 5 years after launch. Lygon, backed by major banks and IBM, aimed to transform guarantees using blockchain technology.
The firm raised $12.75 million in funding from investors and financial institutions, including ANZ, Commonwealth Bank, Westpac, IBM, and Scentre Group. It gained significant publicity as a success story. However, administrators were appointed in June 2023.
In October, Lygon’s property was sold to a partnership that included former executives for $500,000 – one-tenth of its estimated value.
The deal allows the same leadership team to repurchase Lygon’s assets. One staff member said his family lost investing in Lygon. He stated that some early investors and staff are owed substantial sums.
The sale price represents a major dilution of shareholder investments. The former employee expressed surprise at the legal aspects of allowing management to buy Lygon so cheaply. He said Lygon raised close to $5 million from staff and friends now lost.
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