Terraform Labs Files for Bankruptcy After Luna and TerraUSD Collapse Wipes Out $40 Billion
• Terraform Labs, the company behind the TerraUSD and Luna tokens, has filed for bankruptcy in the US after the currencies crashed in May 2022, wiping out $40bn in value.
• Co-founder Do Kwon was arrested in Montenegro in March 2023 and later sentenced to jail for document forgery as he tried to flee the country.
• Kwon faces criminal charges in the US for allegedly defrauding investors as well as charges in South Korea and Singapore.
• The crash of TerraUSD and Luna contributed to the huge 2022 "cryptocrash" which wiped an estimated $400bn off the crypto market.
• Terraform Labs says it has $100-500 million in assets and intends to meet all obligations to staff and vendors through the bankruptcy process.