Posted 1/22/2024, 6:49:00 AM
Terraform Labs Files for Bankruptcy After Luna and TerraUSD Collapse Erases $40B
- Terraform Labs, the company behind the failed TerraUSD and Luna cryptocurrencies, has filed for Chapter 11 bankruptcy protection.
- Terraform Labs estimates its assets and liabilities are between $100M-$500M with 100-199 creditors.
- The bankruptcy filing will allow Terraform Labs to continue operations and address pending litigation with the SEC and in Singapore.
- This comes after the collapse of TerraUSD and Luna erased $40B in market value in May 2022.
- Terraform Labs co-founder Do Kwon, who owns a 92% stake in the company, is currently in custody in Montenegro pending potential extradition to the US or South Korea.