🚀 Terraform Labs, creator of the defunct stablecoin TerraClassicUSD (USTC), has filed for Chapter 11 bankruptcy to help it appeal a lawsuit from the US SEC. CEO Chris Amani says the move is crucial for a successful appeal, which would eliminate the largest claim against the firm. The bankruptcy protections may allow Terraform Labs to appeal without posting a "supersedeas bond" of 110% of the total judgment. Amani argues the SEC lacks authority to charge the firm and that its crypto assets aren't securities. Terraform Labs' treasury reportedly holds $28M in BTC, $7M in other cryptos, and $87M in LUNA tokens.