Terraform Labs PT. She filed a voluntary petition in Delaware for Chapter 11 bankruptcy, according to documents filed on Jan. 21.
The beleaguered cryptocurrency company behind failed stablecoin TerraUSD announced in its filing that it has between $100 million and $500 million in estimated assets and the same amount of liabilities. TerraUSD, a cryptocurrency pegged to the dollar and Terra’s LUNA token, collapsed in May 2022, destroying $1 billion in investor wealth.
“The filing will allow TFL to implement its business plan while navigating ongoing legal proceedings, including pending representative litigation in Singapore and US litigation,” Terraform Labs said in a statement.
Among the list of unsecured creditors are TQ Ventures, a US-based digital asset investment fund, and Standard Crypto, a San Francisco-based investment fund.
Terraform Labs and its founder Do Kwon are currently Facing the possibility of a class action lawsuit In Singapore as well as the experience in the US from the Securities and Exchange Commission (SEC) in connection with the collapse of TerraUSD.