Investing
Terraform Labs files for bankruptcy protection in US
© Reuters. FILE PHOTO: Do Kwon, the cryptocurrency entrepreneur, who created the failed Terra (UST) stablecoin, is taken to court in handcuffs, to face charges of forging official documents, in Podgorica, Montenegro, March 24, 2023. REUTERS/Stevo Vasiljevic/File Pho
By Mrinmay Dey
(Reuters) -Terraform Labs (TFL), the company behind the stablecoin TerraUSD, which collapsed and roiled cryptocurrency markets in 2022, filed for Chapter 11 bankruptcy in the United States, according to court papers filed on Sunday.
Singapore-based Terraform Labs, in a filing with the bankruptcy court in Delaware, listed assets and liabilities in the range of $100-$500 million.
Terraform Labs said it would meet all financial obligations to employees and vendors during the Chapter 11 case without requiring additional financing. It also plans to continue Web3 offerings expansion.
“The filing will allow TFL to execute on its business plan while navigating ongoing legal proceedings, including representative litigation pending in Singapore and U.S. litigation involving the Securities and Exchange Commission (SEC),” Terraform Labs said in a statement.
The SEC’s civil case against Terraform and Kwon is linked to the collapse of TerraUSD, a “stablecoin” designed to maintain a constant $1 price, and the more traditional token Luna, which closely associated with TerraUSD.
Recently, a federal judge postponed the trial of the SEC against the company and its co-founder, Do Kwon, over an alleged $40 billion cryptocurrency fraud, to enable Kwon’s extradition for his participation.
Kwon and Terraform Labs were held responsible for two cryptocurrencies whose collapse caused turbulence in crypto markets around the world two years ago.
Both cryptocurrencies lost an estimated $40 billion or more when TerraUSD failed to maintain its $1 peg in May 2022.
Read the full article here
-
Personal Finance7 days ago
Seniors to get moderate cost of living bump in Social Security payments next year
-
Side Hustles5 days ago
Social Security Payments to Increase By 2.5%: What It Means
-
Investing6 days ago
5 Steps to Creating More Inclusive PR Campaigns
-
Investing4 days ago
Half million still without power in Sao Paulo from Friday storm By Reuters
-
Investing5 days ago
Ambani’s Reliance lobbies India on satellite spectrum in new face-off with Musk By Reuters
-
Make Money7 days ago
How Workers Believe the Presidential Election Will Impact Their Careers
-
Investing6 days ago
Pemex’s Deer Park oil refinery scales back operations after fatal accident By Reuters
-
Personal Finance4 days ago
Inflation sees the lowest annual rise since 2021