On, August 28, #TerraformLabs announced the reopening of the Shuttle Bridge interface. This platform is crucial for users who hold wrapped versions of $LUNC
(Luna Classic) and $USTC
TerraUSD Classic), facilitating their transfer between the blockchain and other prominent blockchains such as Ethereum, $BNB
Chain (BSC), and Harmony.
The #announcement detailed the operational window for this service, stating: “The new Shuttle Bridge interface to redeem wrapped assets is now open. […] The bridge will remain open from now until 30 days after the effective date of the chapter 11 plan, which is estimated to be on or around 30 October 2024. Opening the bridge gives you the opportunity to redeem your assets and use them as you wish. Please ensure you redeem your assets as soon as possible to avoid any issues.”
This interface not only enables the retrieval of assets from these blockchains to Terra Classic but also marks a limited-time opportunity for users to redeem their wrapped assets before the company progresses further in its bankruptcy resolution. After the bridge closes, all crypto assets still in the contracts will be burned. Thus, this the last opportunity for users before the bridge will be permanently shut down. “Users of the Terra Shuttle bridge on #TerraClassic are recommended to use this opportunity to redeem their Terra Classic assets,” the announced.
Just yesterday, the company made another crucial announcement via X. The company unveiled what it intends to be the final upgrade to the blockchain, known as Proposal 4818. This comes as part of the company’s broader strategy to conclude its direct involvement in active development within the ecosystem due to its ongoing legal and financial restructuring.
The statement elaborated: “As TFL begins winding down its operations, Proposal 4818 will be the final chain upgrade that we implement. Pursuant to TFL’s settlement with the SEC and implementation of its proposed chapter 11 plan, TFL will no longer have the ability to support future chain upgrades.”
The announcement marks a pivotal transition from Terraform Labs-led development to community-driven efforts to sustain and possibly evolve the blockchain infrastructure. “Going forward, we look to community-driven initiatives such as the #Phoenix Directive (@phoenix_dir) to take over maintenance and operational responsibilities for the blockchain,” TFL wrote via X.
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In a surprising turn of events for the Terra community, Terraform Labs has filed for Chapter 11 bankruptcy.
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CEO Chris Amani is leading this strategic move, initiated on January 21 in the U.S. Bankruptcy Court for the District of Delaware, as a means to strengthen the company’s position amidst an ongoing legal dispute with the U.S. Securities and Exchange Commission (SEC). Utilizing bankruptcy laws as a protective shield, Terraform Labs challenges the SEC’s lawsuit, arguing against the classification of crypto assets within Terra’s domain as securities.

Terraform Labs’ Bankruptcy Hearing: A Crucial Moment
Today marks a pivotal day for Terraform Labs as they attend their first U.S. bankruptcy hearing. This filing isn’t merely a legal maneuver but a deliberate strategy aimed at reinforcing their defense against the SEC’s multibillion-dollar allegations. The potential to sidestep the typical hefty bond requirement adds an intriguing dimension to this unfolding narrative.
Chris Amani elaborates that the bankruptcy move could alleviate a substantial financial burden. The filing sheds light on the company’s financial standing, revealing assets and liabilities ranging from $100 million to $500 million and involving 100 to 199 creditors.
The SEC has accused Terraform Labs and co-founder Do Kwon of engaging in a “multibillion-dollar crypto asset securities fraud” related to TerraClassicUSD and Luna. A recent court ruling has supported the SEC’s claims, setting the stage for a trial reminiscent of the FTX case.
In a December ruling in the U.S. District Court for the Southern District of New York, Judge Jed Rakoff sided with the SEC, affirming that Terra had issued unregistered securities. This legal victory bolsters the SEC’s case, heightening accusations of securities law violations.
Terraform Labs’ Bold Challenge to SEC Authority
Undeterred by the legal battle, Chris Amani asserts that their upcoming appeal isn’t merely a defense; it’s a direct challenge to the SEC’s authority. The argument posits that Terra’s crypto assets should not be categorized as securities, raising questions about the SEC’s jurisdiction. Notably, the company’s treasury holds approximately $28 million in Bitcoin, $7 million in various cryptocurrencies, and around $87 million in Luna.
The situation further complicates as the SEC agrees to postpone Do Kwon’s trial until March 25, allowing time for extradition proceedings. Kwon faces potential extradition to South Korea, where he could potentially face a 40-year prison sentence for alleged crimes committed there.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

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