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Singapore - basedTerraform Labs ( TFL ) , the party behind digital asset TerraUSD ( UST ) and Luna , charge for Chapter 11 failure in Delaware follow the collapse of its cryptocurrencies in 2022 .
Terraform Labs , which confirmed its Chapter 11 bankruptcy protection filing , say the filing is “ a strategic step that will enable it to cover its mathematical operation and substantiate litigation pending in Singapore and U.S. judicial proceeding involving the Securities and Exchange Commission . ” The kit also say it would “ meet all financial obligations to employees and vendor during the Chapter 11 case ” without requiring extra financing .
grant toa court document lodge today , Terraform Labs ’ judge assets and financial obligation lay out from $ 100 million to $ 500 million , while the number of creditors is between 100 and 199 .
Terraform Labs plans to proceed amplify its web3 business , according to its program line . The society recentlyacquired Pulsar Finance , a fussy - chain portfolio manager and data provider , andlaunched Station v3 , a cryptocurrency notecase , before this month .
“ The Terra community and ecosystem have shown unprecedented resiliency in the face of adversity , and this activeness is necessary to allow us to bear on working toward our collective goals while settle the legal challenges that persist outstanding , ” said Chris Amani , chief executive officer of Terraform Labs .
institute in 2018 , Terraform Labs wiped out at least $ 40 billion in market time value and collapse the crypto industry in May 2022 .
The failure filing comes four days afterthe U.S. SEC agreed to postpone the civil tribulation againstTerraform Labs and the co - founder Do Kwon over an alleged $ 40 billion cryptocurrency fraud to March 25 from January 29 . Kwon is presently in custody in Montenegro for using falsified travel documents to give the country in March . The Terraform Labs atomic number 27 - founder could be extradited to the U.S. or South Korea in March after the final ruling on extradition , which will rest with Montenegro ’s justness minister of religion .
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In February last year , the U.S. SECcharged Kwon and Terraform Labs with rook the U.S. investorswho buy the digital assets Terra USD and Luna .
Kwon owns a 92 % stake in Terraform Labs , and Daniel Shin , another co - laminitis of the company , has an 8 % in TFL , per the court of justice filing .
US , South Korea both seek Do Kwon ’s extradition to face charge
SEC charges Terraform Labs and founder Do Kwon with defrauding investors
