Terraform Labs petitions for US bankruptcy protection

Terraform Labs petitions for US bankruptcy protection

In a Delaware bankruptcy court petition, Singapore-based Terraform Labs disclosed assets and liabilities between $100 and $500 million.

According to court documents submitted on Sunday, Terraform Labs (TFL), the business responsible for the stablecoin TerraUSD that crashed and rocked the cryptocurrency markets in 2022, filed for the bankruptcy process under Chapter 11 in the US.

In a Delaware bankruptcy court petition, Singapore-based Terraform Labs disclosed assets and liabilities between $100 and $500 million.

According to Terraform Labs, it won't need more funding to pay its debts to suppliers and staff throughout the Chapter 11 lawsuit. Additionally, it intends to keep growing its Web3 product line.

"The filing will allow TfL used for carrying out on its business plan while navigating ongoing cases, including lawsuits involving Singapore and the US Securities and Exchange Commission of the United States (SEC)," Terraform Labs said in a statement.

The demise of TerraUSD, a "stablecoin" intended to keep its value at $1, and the more conventional token LUNA, which is strongly connected to TerraUSD, are the causes of the SEC's civil lawsuit against Terraform and Quon. Has taken place.

Recently, in order to facilitate Do Kwon's extradition for his role in the alleged $40 billion cryptocurrency scam, a federal court postponed the SEC's case against the firm and its co-founder.

The two coins whose collapse sparked chaos in cryptocurrency markets worldwide two years ago were attributed to Quon and Terraform Labs.

A minimum of $40 billion was lost by both cryptocurrencies when TerraUSD abandoned its $1 peg in May 2022.