The Terraform Labs (TFL) Chapter 11 bankruptcy filing has recently taken a new turn. Today, July 19, the update from the Terra community revealed that a new court order was issued. This order authorized the shuttle bridge’s reopening and a staggering 150 million LUNA burn, garnering attention toward the Terra ecosystem.

So, let’s look at the latest developments unfolding within the lawsuit that echoed a bustle across the cryptocurrency space.

Court Issues New Order In TFL Chapter 11 Bankruptcy

According to the post shared by the Terra community, the new court order in the Chapter 11 bankruptcy case allows the firm to reopen the Shuttle bridge for the redemption of wrapped assets on Terra Classic. Furthermore, it would allow to undelegate and burn 150 million LUNA received from the Terra community grant.

The ecosystem aims to move all assets within the shuttle bridge wallets to new, even secure wallets. Besides, it aims to make available a new, seamless Shuttle Bridge interface that authorizes users to redeem wrapped assets until 30 days after the Chapter 11 plan becomes effective.

Additionally, the firm will also start the process to undelegate 125 million LUNA currently staked with 49 validators. This comes as a broader consequence of the recent settlement reached between TFL and the SEC. Nonetheless, following the completion of this process, an extra 25 million LUNA from the liquidity provision will be burned, totaling 150 million.

Besides, the firm also clarified that no user action is required as of now. Further announcements will be made in due course.

Also Read: Terra Luna Classic Approaches New Milestone Ahead TFL LUNC & USTC Burn

Recent Legal Developments

A recent report by CoinGape Media cleared the water on why the U.S. SEC deems Terra Luna Classic to be a security, along with other cryptocurrencies such as MATIC, SAND, MANA, etc. Meanwhile, the court also set the TFL Chapter 11 bankruptcy filing deadlines, which is crucial for creditors.

Also, it’s worth mentioning that LUNA price traded at $0.4378, up 0.29%.

Also Read: LUNC News: Terra Luna Classic Moves Closer to Tax2Gas Implementation

The post TFL Chapter 11 Bankruptcy: New Court Order Authorizes Shuttle Bridge Reopening & 150M LUNA Burn appeared first on CoinGape.

---

Filed under: News - @ July 19, 2024 2:25 pm