**Terraform Labs bankruptcy approved, investors may receive partial compensation**

Hello everyone! Today we are going to talk about a big news in the cryptocurrency circle: Terraform Labs bankruptcy approved by the court! 😲

**The court approved bankruptcy, investors may receive compensation**

On September 20, Reuters reported that Terraform Labs obtained court approval to end its business in bankruptcy after reaching a settlement with the U.S. Securities and Exchange Commission (SEC). This news undoubtedly caused quite a stir in the cryptocurrency circle. You know, Terraform Labs once caused investors to lose about $40 billion due to the collapse of TerraUSD and Luna tokens.

**The amount of bankruptcy compensation has attracted attention**

According to Terraform's estimates, as part of the bankruptcy, the company will pay stakeholders about $184.5 million to $442.2 million. Although this amount seems insignificant compared to the losses of investors, it finally gave everyone an explanation.

**SEC charges and settlement process**

The incident dates back to February 2023, when the SEC filed charges against Terraform and its co-founder Do Kwon, alleging that they deceived and misled investors in the collapse of the algorithmic stablecoin Terra USD (UST). The two sides argued over the amount of the fine during the settlement process. Terraform and Kwon's lawyers believed that the fine should be close to $1 million, while the SEC proposed that they pay $5.3 billion. In the end, the two sides reached a relatively compromise settlement.

**Neutral view: The market still needs to be cautious**

We are neutral about this incident. Although the bankruptcy and settlement of Terraform Labs provides investors with certain compensation, it also reminds us to be cautious when investing in cryptocurrencies. The market is volatile and risks cannot be ignored.

**Welcome to interact: What do you think? **

Dear readers, what do you think about the bankruptcy and settlement of Terraform Labs? What impact do you think this incident will have on the cryptocurrency market? Welcome to share your views in the comment area and let's discuss it together!

This is today's crypto story, I hope you like it! Remember to like, comment and share!