Terraform Labs, the company behind the Terra blockchain, has filed for bankruptcy. Its flagship product, the Terra stablecoin and associated LUNA token, failed spectacularly in May 2022. Its CEO, Do Kwon, was arrested in March 2023, and remains in custody awaiting a decision on whether he will be extradited to the United States or South Korea — both of which are looking to charge him over his role in the scheme.
Despite all of that, Terraform Labs had continued to operate. However, it is now in dire financial straits, and has now filed for Chapter 11 bankruptcy in an attempt to sort out its financial obligations amid costly legal cases. Terraform Labs is currently a defendant in a complaint by the SEC, as well as several class-action lawsuits.
According to the company’s bankruptcy filing, it has between $100 million and $500 million in assets, and liabilities in the same range.
Chapter 11 petition
, In re: Terraform Labs
This content was sourced from Web3IsGoingGreat