Terraform Labs to Sell Key Businesses Amid Bankruptcy
YEREVAN (CoinChapter.com) — Singapore, July 9, 2024 – Terraform Labs Pte. Ltd. (TFL), a leading software company specializing in blockchain technology, has announced a strategic sale process of its key businesses as part of its Chapter 11 bankruptcy proceedings. This sale is part of TFL’s efforts to comply with a $4.5 billion settlement agreement with the U.S. Securities and Exchange Commission (SEC). TFL has engaged CAVU Securities, LLC as its investment banker to manage the sale process.
Terraform Labs Sale Amid SEC Settlement. Source: NickelTipping.wiki Terraform Businesses for Sale
TFL is actively exploring options to sell the following businesses:
Terraform Labs Assets Overview: CryptoNews. Source: prnewswire Pulsar: Comprehensive Portfolio Tracker
Pulsar is a portfolio tracker indexing over 100 blockchains. It features a proprietary indexing SDK that abstracts protocols and RPC nodes, simplifying data integration for various blockchain projects. TFL acquired Pulsar Finance in November 2023, just months before filing for Chapter 11 bankruptcy in Delaware in January 2024. Pulsar handles vast amounts of data from multiple blockchains, streamlining application functionalities.
Page 8 of the SEC settlement documents. Source: Court Listener Station: Popular Interchain Wallet
Station is a non-custodial interchain hot wallet initially designed for the Cosmos ecosystem. It supports both browser and mobile platforms and has over 600,000 downloads. This wallet offers users flexibility and security in managing their digital assets. Despite financial difficulties, TFL continues to actively develop the Station wallet, with the last update made in March 2024. Station’s effectiveness and user-friendly design highlight its popularity and reliability.
Enterprise: Simplifying DAO Management
Enterprise is a no-code platform designed to manage Decentralized Autonomous Organizations (DAOs). It provides tools for organization, treasury management, governance-based spending, and staking rewards distribution. Launched in November 2022, Enterprise simplifies DAO operations by allowing even those with limited technical knowledge to manage DAOs effectively. Its comprehensive toolset streamlines operations.
Warp: On-Chain Decentralized Automation
Warp is an on-chain decentralized automation protocol that enables condition-based execution of smart contracts. This provides automation solutions within the blockchain space, allowing for efficient and secure smart contract operations. Despite financial challenges, TFL continues to develop the Warp protocol, with the last update made in February 2024. Warp’s capabilities make it valuable for blockchain developers.
Terraform Labs’ Strategic Sale Amid Financial Challenges
Terraform Labs’ decision to sell these assets is part of a broader strategy to maximize value for its creditors and stakeholders. The company continues to support its key projects while navigating its Chapter 11 bankruptcy proceedings.
TFL’s CEO, Chris Amani, testified that the company holds approximately $150 million in assets. The $4.5 billion settlement with the SEC includes $3.6 billion in damages, $420 million in civil penalties, and approximately $467 million in prejudgment interest.
Terraform co-founder and former CEO Do Kwon agreed to pay $110 million in corruption charges, $14.3 million in contingency interest, and $80 million in civil penalties in partnership with Terraform. The settlement also bans Kwon and Terraform from the crypto industry and settles the SEC’s February 2023 lawsuit accusing the company of securities law violations and fraud.
SEC Charges Terraform Labs and CEO: Crypto Fraud Unveiled. Source: SEC Press Release Impact on Terra Tokens
Terraform Labs launched the US dollar algorithmic stablecoin TerraUSD (UST), which lost its peg to the dollar in May 2022. This led to the creation of Terra Luna Classic (LUNC), pegged to TerraClassicUSD (USTC). The price of Terra (LUNA) remained flat after the news of the sale, falling 3% on the week to $0.38. LUNA is down 98% from its May 2022 peak of $18.87, according to CoinGecko.
Terra LUNA Price Plunge: CoinGecko. Source: CoinGecko
The post Terraform Labs to Sell Key Businesses Amid Bankruptcy appeared first on CoinChapter.
