Posted 1/22/2024, 10:53:38 AM
Terraform Labs Files for Bankruptcy After Luna and TerraUSD Stablecoin Collapse Wiped Out $40B
- Terraform Labs, the company behind the failed TerraUSD and Luna stablecoins, has filed for bankruptcy in the US
- The company estimates its assets and liabilities are between $100M-$500M
- The collapse of TerraUSD and Luna wiped out $40B in crypto market value earlier this year
- Co-founder Do Kwon, who owns 92% of Terraform Labs, is in custody in Montenegro for allegedly using falsified documents
- Terraform Labs says the bankruptcy filing will allow it to continue operations and address legal challenges