Terraform Labs Files for Bankruptcy in US
Reading Time: < 1 minuteTerraform Labs, responsible for the 2022 TerraUSD collapse, has filed for Chapter 11 bankruptcy
The Singapore-based firm intends to meet financial obligations without additional financing and seeks to expand Web3 offerings amid ongoing legal challenges
SEC litigation linked to TerraUSD’s collapse involves co-founder Do Kwon, set to stand trial in March
Terraform Labs, the firm behind 2022’s TerraUSD collaps-athon, has filed for Chapter 11 bankruptcy in the US, disclosing assets and liabilities ranging from $100 to $500 million. The Singapore-based company aims to fulfill financial obligations during the case, ensuring no additional financing is needed, and even plans to continue expanding its Web3 offerings while addressing ongoing legal matters. These matters include SEC litigation related to the collapse of TerraUSD, which will see co-founder Do Kwon stand trial in March.
Terraform Labs Has Battled On Following its Collapse
Terraform Labs was founded in January 2018 by Kwon and Daniel Shin, with the LUNA cryptocurrency launching around two years later. This venture, of course, turned sour two years later when the entire endeavor collapsed, losing some $40 billion.
A new LUNA token was launched in the wake of the scandal, with Terraform Labs attempting to continue to develop an open-source and public blockchain that, in the words of its website, “hosts a vibrant and expanding ecosystem of applications”
However, it seems that the operators have decided that they cannot continue with the current structure and have filed for Chapter 11 bankruptcy, potentially putting the brakes on their attempts to keep the project going.
Kwon, meanwhile, faces multiple charges of fraud at the hands of the SEC, which recently agreed to halt his trial until March so that Kwon, who is currently in Montenegro having served a prison sentence there for identity fraud, can attend in person.
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Filed under: Bitcoin - @ January 22, 2024 11:17 am