Terraform Labs filed for chapter 11 chapter safety Sunday, following the collapse of its TerraUSD and Luna crypto cash in 2022.
In an announcement, Singapore-based Terraform stated it took the “strategic step” of submitting in Delaware chapter court docket so it might proceed to function whereas resolving its “legal challenges.”
Terraform co-founder Do Kwon has been charged by the U.S. Securities and Exchange Commission with defrauding traders out of billions of {dollars}.
“We have overcome significant challenges before and, against long odds, the ecosystem survived and even grew in new ways … we look forward to the successful resolution of the outstanding legal proceedings,” Terraform Chief Executive Chris Amani stated in an announcement.
In May 2022, the TerraUSD and Luna stablecoins collapsed, wiping out greater than $40 billion in market capitalization and serving to kick off a wider crypto crash.
In its submitting Sunday, Terraform cited estimated belongings between $100 million and $500 million, and the identical vary in liabilities.
Last week, a federal decide postponed Kwon’s trial till April, to permit time for his extradition to the U.S. from Montenegro, the place he fled after South Korea issued an arrest warrant for him in late 2022.
Terraform’s different co-founder, Daniel Shin, was indicted by South Korea in April 2023.
Source web site: www.marketwatch.com
