According to ChainCatcher, Reuters reported that Terraform Labs was approved by the U.S. Bankruptcy Court on Thursday to begin liquidation. U.S. Bankruptcy Judge Brendan Shannon approved Terraform's bankruptcy plan at a hearing in Wilmington, Delaware, calling it a "welcome alternative" to continued litigation for investor losses.

Terraform estimates that it will be able to pay $184.5 million to $442.2 million to cryptocurrency investors and other stakeholders as part of bankruptcy liquidation. The impact of this news on the market remains to be seen, but it is undoubtedly the focus of investors.

Earlier, according to Terra's official announcement, the planned confirmation hearing for the Chapter 11 bankruptcy reorganization case of Terraform Labs Pte Ltd (TFL) and Terraform Labs Limited (TLL) has been scheduled for September 19, 2024 at 10 a.m. Eastern Time (10 p.m. Beijing Time).