The post BREAKING: End of an Era – Terraform Labs Approved For Bankruptcy After Settling With SEC appeared on BitcoinEthereumNews.com.

In a breaking development, Terraform Labs has been approved for bankruptcy liquidation following a US SEC settlement. Terraform Labs received court approval today to wind down its operations as part of bankruptcy proceedings following a settlement with the U.S. Securities and Exchange Commission (SEC). The SEC accused the company of defrauding cryptocurrency investors who lost an estimated $40 billion when Terraform’s TerraUSD and LUAN tokens crashed in 2022. U.S. Bankruptcy Judge Brendan Shannon approved Terraform’s bankruptcy plan during a hearing in Wilmington, Delaware, calling it a “welcome alternative” to protracted litigation over investor losses. Terraform filed for bankruptcy in January 2024, and the approval clears the way for the company to begin liquidating its assets. As part of the settlement, Terraform Labs agreed to pay the SEC $4.47 billion after a Manhattan jury found the company liable for defrauding investors in April. However, the SEC is expected to recover little to nothing from the settlement, as the regulator only agreed to pay out after Terraform satisfied claims related to crypto losses during its bankruptcy liquidation. Terraform noted that it is “impossible to estimate” the total value of eligible crypto loss claims at this time. The company estimates that it could pay out between $184.5 million and $442.2 million to affected crypto buyers and other stakeholders as part of the liquidation process. *This is not investment advice. Follow our Telegram and Twitter account now for exclusive news, analytics and on-chain data! Source: https://en.bitcoinsistemi.com/breaking-end-of-an-era-terraform-labs-approved-for-bankruptcy-after-settling-with-sec/

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Filed under: News - @ September 19, 2024 9:26 pm