According to Foresight News, Terra announced that the bankruptcy court order in TFL’s Chapter 11 case authorized TFL to do the following: reopen the Shuttle Bridge to redeem the sealed assets on Terra Classic; cancel the delegation and destroy 150 million LUNA.
According to the court order, TFL plans to transfer all assets held in the Shuttle Bridge wallet to a new wallet and provide a new, simplified Shuttle Bridge interface that supports users to redeem wrapped assets within 30 days. After that, TFL intends to permanently shut down Shuttle Bridge and all remaining assets will be destroyed.
TFL's proposed Chapter 11 plan has not yet been approved by the bankruptcy court and is not expected to take effect until late September 2024 at the earliest. Pursuant to the bankruptcy court order and in accordance with the settlement reached between TFL and the SEC, TFL will begin the de-authorization process for the 125 million LUNA currently staked by the 49 validators recommended by Terra. Once LUNA is de-commissioned, the 125 million LUNA used for delegation and the 2.5 million LUNA used for liquidity supply will be destroyed.
