Terraform Labs Pte. Lte. has filed for bankruptcy under Chapter 11 in the US Bankruptcy Court for the District of Delaware on January 21, as stated on the court’s website.
According to the company’s filing, its liabilities are estimated to be between $100 million and $500 million, with assets falling within the same range. Terraform Labs is responsible for the creation of stablecoin TerraUSD and its sister cryptocurrency Luna, both of which collapsed in May 2022.
The US Securities and Exchange Commission charged the company and former CEO Kwon Do-hyeong with fraud in February 2023.
Terraform Labs stated that the bankruptcy filing will allow them to address ongoing legal matters, including the SEC lawsuit and a pending litigation in Singapore.
