Large companies such as Microsoft, Amazon, Nvidia, and Meta may seem like powerhouses of efficiency to the common person, seemingly able to accomplish thousands upon thousands of tasks in a day.
But look beneath the surface, and you’ll see that each mammoth organization has a network of other businesses helping them manage that seemingly impossible list of tasks. This is one of the golden keys to success that keeps said businesses making billions of dollars every year.
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However, for every big success story, there are many who try to thrive but are unable to.Â
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Some cannot secure the funding they need to continue essential projects, while others may be adversely affected by the financial landscape and other key factors. It’s a sad story, but unfortunately, it’s also a common one in a highly competitive business world.
Climate startup files for Chapter 11 bankruptcy
Climate finance firm Aspiration Partners (CTN Holdings), previously backed by Microsoft and Meta, filed for Chapter 11 bankruptcy on March 30.Â
The company seeks to sell its assets to repay debts, which it will do at auction 45 days from the date of the bankruptcy filing.
The move comes in the wake of major controversy within Aspiration. One of the company co-founders and its largest shareholder, Joseph Sanberg, 45, was arrested on March 3 on a federal criminal complaint alleging that he conspired to defraud two investor funds of at least $145 million.
Sanberg allegedly worked in tandem with 51-year-old Ibrahim Ameen AlHusseini, committing wire fraud and falsifying documents to help Sanberh achieve his goal. Per his plea agreement, AlHusseini made approximately $12.3 million in payments for his actions. He has pled guilty to the claims and is scheduled to be sentenced on September 29, 2025.
“Our prosecutors and law enforcement partners have worked methodically to secure a guilty plea from one of the main offenders in this case and have now charged another member of the conspiracy,” said Acting United States Attorney Joseph McNally. “We will continue to ensure that markets and businesses receive an honest and level playing field in which to operate.”
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The scandal left Aspiration in a compromised position, unable to secure additional funding, despite a statement from The U.S. Department of Justice that “The allegations relate solely to Sanberg’s personal conduct and do not implicate CTN or its affiliates.”
Aspiration warns its creditors
Aspiration’s unsecured creditors include the Los Angeles Clippers and Kia Forum, who are owed approximately $40 million linked to contracted carbon credits. Former Microsoft CEO Steve Ballmer owns both.
Unfortunately, it may be a while before these creditors see the money they’re owed. According to Chief Restructuring Officer Miles Staglik, “Realising value will require substantial investment and patience.”
The bankruptcy also raises concerns about the voluntary carbon market (VCM), which is currently valued at $933.23 billion. This decentralized market, which allows individuals and organizations to buy and sell carbon credits to offset their greenhouse gas emissions, is of great importance to businesses striving to reach climate action goals.