Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • TRADING
  • SUBMIT
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • TRADING
  • SUBMIT
Crypto Flexs
Home»ADOPTION NEWS»Terraform Labs says bankruptcy will help it appeal the SEC’s fraud lawsuit.
ADOPTION NEWS

Terraform Labs says bankruptcy will help it appeal the SEC’s fraud lawsuit.

By Crypto FlexsJanuary 31, 20243 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Terraform Labs says bankruptcy will help it appeal the SEC’s fraud lawsuit.
Share
Facebook Twitter LinkedIn Pinterest Email

Terraform Labs’ Chapter 11 bankruptcy protection will allow the company to pursue its appeal of a securities fraud lawsuit from the U.S. Securities and Exchange Commission, the company said in a filing Tuesday.

“(Bankruptcy protection) is critical to the debtor’s ability to operate as a going concern and preserve value for creditors and stakeholders, including first parties. soil Luna

-3.95%
community), providing an orderly process for resolving competing claims against them and pursuing appeals of SEC enforcement actions,” Terraform Labs CEO Chris Amani wrote. filing.

the company Chapter 11 Bankruptcy Filing It was filed Jan. 21 in the U.S. Bankruptcy Court for the District of Delaware, with estimated assets and liabilities between $100 million and $500 million. The first hearing on the bankruptcy petition is scheduled. wake up in the united states on wednesday

Amani said that due to the size of a potential money judgment, the company “will likely not be able to satisfy such judgment and will not be able to post the superseding bond required to appeal.”

“Without Chapter 11 protection, the debtor would have to liquidate after trial and final judgment,” he said. He also added that a successful appeal of the SEC’s claims will reduce Terraform’s debt and potentially lead to a positive financial outcome for Terraform. debtors, creditors and the community.

The SEC indicted the company and then-CEO Dohyung Kwon on securities fraud charges in February 2023, accusing the team of orchestrating a “multibillion-dollar cryptocurrency asset securities fraud” while also “offering and selling interconnected cryptocurrencies to defraud investors.” He said he had raised billions of dollars from . “Crypto-asset securities product family, many unregistered transactions.”

The current Terra CEO also reiterated the company’s claims of fraud from the SEC. “The Debtors disagree with the district court’s summary judgment decision and believe the SEC enforcement action should be reversed because the cryptocurrency tokens at issue are not securities under the Act and are outside the jurisdiction of the SEC,” Amani said in the filing. said in the document.

He was previously Judge Jed Rakoff of the U.S. District Court for the Southern District of New York. Agree with SEC argument Terra served the unregistered securities on summary judgment in December.

Terraform Labs is the company behind the algorithmic stablecoin TerraUSD and its sister cryptocurrency Luna, which infamously collapsed in May 2022. Former CEO Kwon was arrested in Montenegro in March last year on charges of attempting to travel with false documents. While the former Terra chief awaits extradition in his home country, the U.S. District Court for the Southern District of New York pushed back At Attorney Kwon’s request, the SEC will proceed with a trial against Terraform and Chairman Kwon until the end of March.


Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.

© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

TRX Price Prediction: TRON targets $0.35-$0.62 despite the current oversold situation.

October 26, 2025

BTC RSI hits April low as Coinbase premium turns red.

October 18, 2025

Crypto Exchange Rollish is expanded to 20 by NY approved.

October 2, 2025
Add A Comment

Comments are closed.

Recent Posts

Unibase (UB), Humanity (H), And ConstructKoin (CTK) Are This Week’s Crypto Winners As Decentralized Infra Shines

October 30, 2025

Let AI Work For You — Empowering Everyone To Profit From The Intelligence Era

October 30, 2025

NOWPayments Launches $0 USDT (TRC20) Network Fee Offer For New Partners

October 30, 2025

Jiuzi Holdings Launches $1 Billion Bitcoin Treasury With SOLV To Drive Institutional Yields And RWA Innovation

October 30, 2025

Hetu 3.0 – Deep Intelligence Money

October 30, 2025

Doodles has joined Universal Monsters and dropped a TON of NFT stickers.

October 30, 2025

Ethereum whales doubled down on ETH as the $5,000 price target moves higher.

October 30, 2025

SOL remains fixed below $200 despite surge in ETF trading volume

October 30, 2025

Bybit’s BbSOL Gains Institutional Custody Support From Anchorage Digital, Reinforcing Its Institutional-Grade Standing

October 30, 2025

OKX Ventures Invests in Accountability for Enhanced Financial Verification

October 30, 2025

Injective (INJ) Completes First Community Buyback Worth $32 Million

October 29, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

Unibase (UB), Humanity (H), And ConstructKoin (CTK) Are This Week’s Crypto Winners As Decentralized Infra Shines

October 30, 2025

Let AI Work For You — Empowering Everyone To Profit From The Intelligence Era

October 30, 2025

NOWPayments Launches $0 USDT (TRC20) Network Fee Offer For New Partners

October 30, 2025
Most Popular

Lido Staked Ether takes on XRP in market cap as Ethereum reaches $3.2k.

February 26, 2024

Land registries must be converted to blockchain technology

April 28, 2024

Bernard Venet explores generative art in Sotheby’s Metaverse debut

February 18, 2024
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.