Terraform Labs, the company behind the TerraUSD stablecoin and the Luna token, whose collapse in the spring of 2022 sparked the crisis known as the “crypto winter,” has filed voluntarily for protection under Chapter 11 of the US Bankruptcy Code.
Terraform Labs' application, which was filed in the Delaware District Bankruptcy Court, indicates that the company had assets worth between $100 and $500 million (€92 and €460 million), as well as debts also ranging between $100 and $500 million. dollar.
The company noted that this presentation will allow it to implement its business plan while addressing ongoing legal proceedings, including lawsuits in the United States involving the Securities and Exchange Commission (SEC).
“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. In a statement distributed to the American press.
Singapore-based Terraform Labs is 92% controlled by its co-founder Do Kwon, who is accused by the SEC of defrauding US investors who bought TerraUSD and Luna and is currently detained in Montenegro, while Korea Sur has also requested his extradition.
