Terraform Labs Ready for Bankruptcy Wind-down After SEC Settlement
The post Terraform Labs Ready for Bankruptcy Wind-down After SEC Settlement appeared on BitcoinEthereumNews.com.
Terraform Labs, the creator of the Terra blockchain protocol, has secured court approval to proceed with its bankruptcy wind-down after settling a lawsuit with the U.S. Securities and Exchange Commission (SEC), as reported by Reuters. The company behind the once-prominent ecosystem is in the process of liquidating its assets and winding down operations following court approval. The approval is likely putting an end for the company’s bankruptcy process, which has been ongoing since January this year. Bankruptcy Judge Brendan Shannon described the plan as a “welcome alternative” to continued litigation. Bye-Bye-Bye The judge’s decision follows the approval from the U.S. District Court for the Southern District of New York in June, which delivered a final consent judgment against Terraform Labs and its co-founder Do Kwon. As part of the settlement, Terraform Labs was required to pay $4.47 billion, including a $3.58 billion disgorgement fee and a $420 million civil penalty. The company also agreed to cease operations and transfer control of the Terra blockchain to the community. Following the settlement with the SEC, CEO Chris Amani of Terraform Labs announced the company’s plan to wind down operations. He also confirmed the agreement to shut down operations. Terraform Labs had “always intended to dissolve” at some point, said Amani at the time, and can now proceed with this plan following the SEC settlement. The company plans to burn its remaining vested and unvested LUNA tokens, committing to a decisive end of the company’s direct involvement with the token. Terraform Labs also announced plans to sell several key projects in the Terra ecosystem, including Pulsar Finance, Station Wallet, and Enterprise DAO. The proceeds will go towards fulfilling the SEC settlement. A Big Bill Terraform Labs’ Do Kwon is also liable for $110 million, with additional assets including PYTH tokens to be transferred…
Filed under: News - @ September 20, 2024 12:23 pm