PANews reported on July 19 that Terra announced that in TFL's bankruptcy reorganization case, the court authorized TFL to take the following actions: 1) Reopen the Shuttle bridge for redemption of wrapped assets on Terra Classic; 2) Unpledge and destroy 150 million LUNA received from Terra community grants. According to the court order, TFL plans to transfer all assets in the Shuttle bridge wallet to a new, more secure wallet and provide a new, simplified Shuttle bridge interface that allows users to redeem wrapped assets within 30 days of TFL's Chapter 11 plan taking effect. After that, TFL intends to permanently close the Shuttle bridge and the remaining assets will be destroyed. TFL's Chapter 11 bankruptcy reorganization plan has not yet been approved by the court and is expected to take effect as early as the end of September 2024.

At the same time, pursuant to the court order and in compliance with the settlement agreement reached between TFL and the SEC, TFL will begin to unstake the 125 million LUNA currently held by 49 validators recommended by the Terra Delegation Committee. The list of these validators can be found in the Terra Community Forum. Once the LUNA is unstaked, 125 million LUNA used for delegation and 25 million LUNA used for liquidity provision will be destroyed. No action is required at this time, and TFL will announce the measures that Shuttle bridge users can take in due course.