Terraform Labs filed for chapter 11 chapter safety Sunday, following the collapse of its TerraUSD and Luna crypto cash in 2022.
In an announcement, Singapore-based Terraform mentioned it took the “strategic step” of submitting in Delaware chapter courtroom so it may proceed to function whereas resolving its “authorized challenges.”
Terraform co-founder Do Kwon has been charged by the U.S. Securities and Trade Fee with defrauding buyers out of billions of {dollars}.
“We now have overcome important challenges earlier than and, in opposition to lengthy odds, the ecosystem survived and even grew in new methods … we look ahead to the profitable decision of the excellent authorized proceedings,” Terraform Chief Government Chris Amani mentioned in an announcement.
In Might 2022, the TerraUSD and Luna stablecoins collapsed, wiping out greater than $40 billion in market capitalization and serving to kick off a wider crypto crash.
In its submitting Sunday, Terraform cited estimated belongings between $100 million and $500 million, and the identical vary in liabilities.
Final week, a federal decide postponed Kwon’s trial till April, to permit time for his extradition to the U.S. from Montenegro, the place he fled after South Korea issued an arrest warrant for him in late 2022.
Terraform’s different co-founder, Daniel Shin, was indicted by South Korea in April 2023.
