Terraform Labs files for Chapter 11 bankruptcy in Delaware

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The Block2024/01/22 02:52

By:The Block

Quick Take Co-founder and former CEO Do Kwon is currently awaiting extradition from Montenegro, while his U.S. trial is set for late March.

Terraform Labs files for Chapter 11 bankruptcy in Delaware image 0

Terraform Labs Pte. Lte. filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on Jan. 21, according to the court’s website .

The company’s liabilities are estimated to be between $100 million and $500 million, and its amount of assets lies in the same range, Bloomberg reported .

Terraform Labs is the company behind the algorithmic stablecoin TerraUSD and sister cryptocurrency Luna, both of which collapsed in May 2022. The U.S. Securities and Exchange Commission charged the firm and then-CEO Kwon Do-hyeong with fraud in February 2023.

Kwon was arrested in March last year in Montenegro for attempting to travel with false documents. The former Terra LUNA -4.94% chief is awaiting his extradition from the country, while the U.S. District Court for the Southern District of New York pushed back SEC’s trial against Terraform and Kwon to late March at Kwon’s request.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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Cryptopolitan•2024/11/24 22:00