Terraform Labs Can Restart Shuttle Service And Burn 125 Million LUNA Tokens



Terraform Labs (TFL)'s bankruptcy procedures have been advanced by a court ruling authorizing numerous essential activities.


Terraform Labs, which was held accountable for scamming investors and inflicting $40 billion in damages with the collapse of its TerraUSD and LUNA coins in 2022, plans to handle important operations and settlements during bankruptcy.




Shuttle Bridge Reopening, LUNA Token Burning
The court judgment allows Terraform Labs to restore the Shuttle bridge, which transfers Terra assets to Ethereum (ETH), Binance Smart Chain (BSC), and Harmony for wrapped tokens, the firm revealed Friday.


TFL wants to move all Shuttle Bridge wallet assets to more secure wallets and simplify wrapped asset redemption until 30 days after TFL's proposed Chapter 11 plan takes effect.


TFL plans to permanently close the Shuttle bridge and destroy any remaining assets. Additionally, Terraform Labs stated it will undelegate and destroy 150 million Terra Community Grant LUNA tokens.


TFL will also un-delegate the 125 million LUNA staked with the 49 Terra Delegation Committee validators in accordance with the bankruptcy court ruling and the SEC settlement.


The corporation said that the 125 million LUNA utilized for delegations and 25 million for liquidity provisions would be incinerated once the LUNA is undelegated.


Terraform labs to close
After settling with the SEC, Terraform Labs has folded, prompting this bankruptcy court decision. A year of litigation culminated with a $4.47 billion settlement.


However, Terraform's former CEO Do Kwon, wanted by the US and South Korea for capital markets and securities fraud, also faced legal issues.


The Supreme Court of Montenegro overturned Do Kwon's extradition to South Korea in April, sending it to the Higher Court in Podgorica. The justice minister will decide whether the extradition's legal criteria have been satisfied when the Higher Court decides.


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