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Fetch.ai (FET) Runs Into Problems As UK Entity Is Put Into Administration

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Fetch.ai (FET), one of the best performers in the crypto industry in 2023, seems to be in trouble after such an astounding performance. The firm behind the AI-based cryptocurrency has run into troubles in the United Kingdom after its UK entity was involved in a million-dollar lawsuit that saw it being put into administration.

Fetch.ai Runs Into Problems

According to reports from The Standard, Fetch.ai’s troubles started between 2021 and 2022, when the company took massive losses after the cryptocurrency industry saw prices plunge across the board. The company had reportedly lost 16.7 million pounds during this time and had to write down its assets by 231 million pounds.

Despite the price of FET recovering in 2023, the company continued to be plagued by problems and would eventually be sued by a former contractor. Eventually, Fetch.ai settled the claim by the contractor to pay around $1 million to the contractor, which included interest, as the contractor claimed they were owed $750,000 in unpaid FET tokens that were part of the deal.

The company was reportedly plagued with “financial difficulties,” and in an effort to save the business, the court ordered that the UK entity be put into administration. Now, a business being put into administration means that a third and unconnected party is given control of a company and, in the process, investigates the finances and then proposes a way forward. In the case of Fetch.ai, administrators from ReSolve were appointed to oversee this process after an official insolvency filing.

Token price shows strength above $0.55 | Source: FETUSD on Tradingview.com

Way Forward For The Company

In the wake of the company being put into administration, there have been some significant developments in connection to Fetch.ai. After ReSolve administrators were appointed to the case, the company was put up for sale and was eventually bought back by a consortium of Fetch.ai’s founders. According to ReSolve, the entity was sold back to the consortium owned by the founders because they had the best offer.

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Author: Best Owie

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