**Terraform Labs Bankruptcy Plan Approved**

A U.S. judge has greenlit Terraform Labs' bankruptcy plan, marking a significant step in the firm's winding down process. Judge Brendan Shannon of the Delaware Bankruptcy Court approved the plan on Sept. 19, calling it a "welcome alternative" to ongoing litigation. Terraform, which filed for Chapter 11 in January, cited liabilities and assets between $100-$500 million.

The company’s downfall began in 2022 with the collapse of its algorithmic stablecoin, UST. Following a lawsuit by the SEC, Terraform and founder Do Kwon were found liable for defrauding investors, facing $4.5 billion in fines.

Kwon, arrested in Montenegro in 2023, awaits extradition to the U.S. or South Korea. Terraform’s winding down plan suggests payouts between $185-$442 million, but total losses remain uncertain.