U.S. Delaware District Bankruptcy Court Judge Brendan Shannon has approved Terraform Labs’ bankruptcy plan. The company filed for Chapter 11 protection in January with estimated liabilities and assets between $100 million and $500 million.
Judge Shannon called the plan a “welcome alternative” to address investor losses. Terraform’s bankruptcy filing comes after the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against the platform and its founder, Do Kwon.
Terraform has suggested it could pay between $185 million and $442 million under the liquidation plan. However, estimating the total losses was deemed “impossible.”
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