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$86 Million Blockchain Gaming Startup Files for Bankruptcy

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The gaming industry is gaining momentum as they’re reshaping the way we interact with the world. It is one of the few sectors that inspires innovation by continually pushing the boundaries of what’s possible to build new technology to serve the millions of gamers across the globe.
Many see blockchain gaming as the future of video games. Even though blockchain gaming is still very much in its early stage, there are a handful of companies that makes games built on blockchain technology. Komodore64, a Dutch video game company has created a gaming console with Komodo gaming SDK powered by blockchain technology.

The latest news has it that the Netherlands police have arrested the founder of the startup after reportedly defrauding investors, suppliers and employees.  

The firm, Komodore64, was supposedly tracking the sales of in-game collectibles using the Komodo blockchain in games it developed. Since its launch in March of this year it claimed to have raised over $86 million from investors, including Goldman Sachs.

Further investment was reportedly also made into its associated cryptocurrency token, K64. However, after failing to pay suppliers and employee salaries, the business has filed for bankruptcy.

After getting the funds, Komodore64 reportedly held a launch party that cost thousands of euros. According to the report, the launch was held at one of its suppliers’ venue but are yet to be paid for the event.

The employees of the company also claim to not have been paid “for months.” The UWV (Dutch Employee Insurance Agency) is submitting a claim in an attempt to recover the unpaid salaries.

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