Terraform Labs Pte. Lte. According to the Bankruptcy Protection Agency, a Chapter 11 bankruptcy application was filed in the U.S. Bankruptcy Court in the District of Delaware on January 21. Court’s website.
The company’s liabilities are estimated at between $100 million and $500 million, and its assets are in the same range, the filing showed.
Terraform Labs is the company behind algorithmic stablecoin TerraUSD and sister cryptocurrency Luna, which collapsed in May 2022. U.S. Securities and Exchange Commission charged The company’s then-CEO Kwon Do-hyung was accused of fraud in February 2023.
The bankruptcy filing will allow the company to address its ongoing legal issues, including the SEC lawsuit and pending litigation in Singapore, Terraform Labs said in a statement shared with The Block.
“This action protects our ability to continue collaborating with the community on infrastructure, innovative tools and products, and other ecosystem support,” Chris Amani, CEO of Terraform Labs, said in a statement.
Mr. Kwon was arrested in Montenegro in March last year on charges of possessing false documents. former soil Luna
-5.21%
Update: More details added to the submission and Terraform Labs’ statement.
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About the author
Danny Park is The Block’s East Asia reporter, writing about topics including Web3 development and cryptocurrency regulation in the region. He previously worked as a reporter for Forkast.News, where he actively covered the fall of Terra-Luna and FTX. Based in Seoul, Danny previously produced written and video content for media companies in Korea, Hong Kong and China. He holds a Bachelor’s degree in Journalism and Business Marketing from the University of Hong Kong.