Horizon State, a blockchain voting platform based in Australia, has gone bankrupt after a lawsuit has been filed against it. The reason for the closure, according to a statement by Horizon State itself, is due to the high legal costs of the lawsuit.
It is not yet clear who filed the lawsuit, nor the details, but the Australian newspaper Micky thinks that former CEO Oren Alazraki could be involved in the lawsuit, based on a discussion born on the Telegram group of the site.
The value of the HST token falls sharply
It is hardly surprising that the project’s token, called the Horizon State’s Decision Token (HST), has lost more than 50% of its value as a result of the news, reaching -99% below its historical high.
The company’s public statement reads:
“While we can’t reveal many details of the cause, we can at least say that it has nothing to do with the business—which has been taking consistent strides forward to new heights—and everything to do with a recently-served legal case in Australia”.
The statement goes on to say that the costs of disputing the case and a potential mediation process to reach an agreement would entail a very high expense that would see the business become insolvent and, in the end, would force its closure.
Previous uses of the platform
This year, the South Australian government used the platform to elect members of a council regarding recreational fishing.
A smaller party in New Zealand also used the platform to elect its own internal leadership.
Horizon State was founded in Melbourne by entrepreneur Jamie Skella. The project raised $1.4 million from small-scale investors during its launch in November 2017.
Skella recently tweeted that he hasn’t worked on Horizon State for a long time and isn’t allowed to discuss publicly the little he knows about the case.