Terraform Labs files for Chapter 11 bankruptcy in Delaware
Terraform Laboratories Pte. Lte. On January 21, it filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware. court website.
The company’s liabilities are estimated to be between $100 million and $500 million, and its assets are in the same range. Bloomberg reported.
Terraform Labs is the company behind algorithmic stablecoin terrausd and its sister cryptocurrency Luna, both of which collapsed in May 2022. US Securities and Exchange Commission charged The company and then-CEO Kwon Do-hyeong were accused of fraud in February 2023.
Kwon was arrested in Montenegro in March last year for attempting to travel with false documents. Old Soil LUNA -4.84% The US District Court for the Southern District of New York awaits the extradition of the chief. pushed back At Kwon’s request, the SEC’s lawsuit against Terraform and Kwon is due by the end of March.
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