PODGORICA, MONTENEGRO – JUNE 16: Do Kwon is taken exterior of court docket on June 16, 2023 in Podgorica, Montenegro. Cryptocurrency TerraUSD and its companion token Luna collapsed in 2022, wiping out roughly 40 billion USD from the cryptocurrency market and Do Kwon, the founder was charged with fraud by American prosecutors following his arrest in Montenegro. (Picture by Filip Filipovic/Getty Pictures)
Filip Filipovic | Getty Pictures Information | Getty Pictures
Terraform Labs, the corporate behind the stablecoin TerraUSD, which collapsed and roiled cryptocurrency markets in 2022, filed for Chapter 11 chapter in the USA, in accordance with court docket papers filed on Sunday.
Singapore-based Terraform Labs, in a submitting with the chapter court docket in Delaware, listed property and liabilities within the vary of $100-$500 million.
Terraform Labs mentioned it will meet all monetary obligations to staff and distributors throughout the Chapter 11 case with out requiring extra financing. It additionally plans to proceed Web3 choices growth.
“The submitting will enable TFL to execute on its marketing strategy whereas navigating ongoing authorized proceedings, together with consultant litigation pending in Singapore and U.S. litigation involving the Securities and Change Fee (SEC),” Terraform Labs mentioned in an announcement.
The SEC’s civil case towards Terraform and Kwon is linked to the collapse of TerraUSD, a “stablecoin” designed to take care of a continuing $1 worth, and the extra conventional token Luna, which carefully related to TerraUSD.
Lately, a federal choose postponed the trial of the SEC towards the corporate and its co-founder, Do Kwon, over an alleged $40 billion cryptocurrency fraud, to allow Kwon’s extradition for his participation.
Kwon and Terraform Labs have been held chargeable for two cryptocurrencies whose collapse precipitated turbulence in crypto markets world wide two years in the past.
Each cryptocurrencies misplaced an estimated $40 billion or extra when TerraUSD failed to take care of its $1 peg in Might 2022.
