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Based in Singapore Terraform Laboratories (TFL)the company behind the digital assets TerraUSD (UST) and Luna, Filed for Chapter 11 bankruptcy in Delaware After the collapse of its cryptocurrencies in 2022.
Terraform Labs, which confirmed it has filed for Chapter 11 bankruptcy protection, said the filing is “a strategic step that will enable it to continue its operations and support pending litigation in Singapore and the United States involving the Securities and Exchange Commission.” uniforms It also said it would “fulfill all financial obligations to employees and vendors during the Chapter 11 case” without the need for additional financing.
According to a court document filed today, Terraform Labs’ estimated assets and liabilities range from $100 million to $500 million, while the number of creditors ranges from 100 to 199.
Terraform Labs plans to continue expanding its Web3 business, according to its statement. company recently It acquired Pulsar Financean on-chain wallet manager and data provider, and Launched Terminal v3a cryptocurrency wallet, was announced earlier this month.
“The Terra community and ecosystem have demonstrated unprecedented resilience in the face of adversity, and this action is essential to allow us to continue working toward our collective goals while resolving the legal challenges that remain,” said Chris Amani, CEO of Terraform Labs.
Founded in 2018, Terraform Labs wiped out at least $40 billion in market cap and the cryptocurrency industry collapsed in May 2022.
The bankruptcy filing comes four days after the US Securities and Exchange Commission agreed to postpone the civil trial against Do Kwon Terraform Labs co-founder over an alleged $40 billion cryptocurrency fraud to March 25 from January 29. Kwon is currently detained in Montenegro for using false travel documents to leave the country in March.
In February of last year, The US Securities and Exchange Commission has charged Kwon and Terraform Labs with defrauding US investors. Who bought the digital assets Terra USD and Luna.
Kwon owns a 92% stake in Terraform Labs, and Daniel Chen, another co-founder of the company, owns 8% in TFL, according to the court filing.
More to follow…