Terraform Labs to Sell 4 Firms Amid $4.5 Billion SEC Settlement !!
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Terraform Labs aims to sell four firms in a $4.5 Billion offering to the SEC. The firm’s sale is done to maximize the benefits for creditors and stakeholders. The businesses mentioned are Pulsar Finance and Station, Enterprise, and Warp.
Terraform Labs Announces Sale of Key Businesses
Terraform Labs purchased Pulsar Finance in November 2023, a month before the PLP was forced to file for Chapter 11 bankruptcy in January. Earlier, Terraform faced financial issues, but the company is still working on the Warp protocol. The original Enterprise series was launched a year before, back in November 2022.
The company said selling these businesses is in line with its strategy to drive operational efficiency and thereby revive shareholders’ value. Terraform Labs extends an invitation to potential buyers to contact CAVU Securities about the prospect.
This is done following the agreements that it entered with the SEC when it decided to settle the case.
TerraUSD Failure Erases Billions from Market
Some of the investments that attracted public attention were those made by Terraform Labs, which developed Terra Luna Classic (LUNC). The firm was also connected with the stablecoin TerraUSD (UST).
In May 2022, the UST blockchain had another incident that ignited a significant market reaction. UST soon lost its peg to the USD back then. The failure affected most digital coins and completely erased almost $40 billion from the market capitalization.
This situation failed several crypto hedge funds that had posted their securities to Terraform Labs. Specifically, in April 2024, both Terraform Labs and the company’s co-founder, Do Kwon, were convicted of fraud against investors.
It appears the sale announcement did not trigger a price hike in the Terra tokens. LUNA at the time of writing traded at $0.38 noting a rise of 1.3% in the last 24-hours.
