The corporate behind the ill-fated UST stablecoin stated the submitting is a “strategic step” that may permit it to proceed working.
Terraform Labs, the corporate behind the now-defunct cryptocurrencies LUNA and TerraUSD (UST), has filed for voluntary Chapter 11 chapter in Delaware.
The corporate estimates its complete property to be between $100 million and $500 million, based on a Jan. 21 submitting. Liabilities are estimated to be in the identical vary.
In a press launch shared with Terra, the corporate stated the transfer is a “strategic step” that may permit it to proceed working and supporting the Terra group and ecosystem. Insurgent.
The corporate plans to proceed increasing its Web3 choices and touting its current acquisition of cross-chain portfolio administration firm Pulsar Finance.
Terraform Labs is embroiled in a number of authorized battles after its flagship stablecoin UST, which provided a 20% fastened yield, collapsed and worn out $40B in worth, triggering a widespread market sell-off.
The Terra implosion in Might 2022 additionally accelerated the downfall of main cryptocurrency firms, together with Three Arrows Capital.
The U.S. Securities and Alternate Fee (SEC) accused the corporate and its chief, Do Kwon, of committing a multibillion-dollar fraud. In December 2023, a choose dominated that Terraform Labs and its former CEO Do Kwon weren’t responsible of issuing unregistered securities.
Quan was detained in Montenegro in March 2023 and is at present awaiting extradition to the US.
[Story corrected Jan. 24 to reflect Do kwon no longer leads Terraform Labs.]
