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$FET Fet is at Support . But Fet #bankrupt News is Very Dangerous . So Get out From this Coin and Trade Wisely .
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Terraform Labs Declares Bankruptcy 20 Months After Terra LUNA Collapse
1. Terraform Labs Chapter 11 Bankruptcy Overview:
- Filed under Chapter 11 by CEO Chris Amani, with the approval of the Board of Directors.
2. Financial Snapshot:
- Assets valued at $100 million, while liabilities amount to $500 million.
3. Founder's Legal Situation:
- Founder Do Kwon remains incarcerated in Montenegro for alleged involvement with falsified documents.
4. USTC Stablecoin Status:
- Despite the company's financial challenges, USTC, Terraform Labs' stablecoin, still holds the 9th position in market cap among stablecoins.
After engaging in an intricate game of cat and mouse with various agencies for nearly 20 months, Do Kwon and Terraform Labs have, at last, sought refuge in Chapter 11 Bankruptcy, officially filing with Delaware authorities on January 21, 2024. This strategic move comes after the company's notorious USTC and LUNA projects collapsed in 2022, causing a global loss of over $64 billion in assets.
Terraform Labs, the orchestrator of this financial drama, has made its bankruptcy filings under the United States Chapter 11 Bankruptcy, attributing the decision to a significant disparity between its assets and liabilities. According to the filed documents, the company's assets total $100 million, while liabilities soar to nearly $500 million, with a creditor count ranging between 100 and 199.
Legal proceedings were executed under the guidance of Chris Amani, Terraform Labs' CEO, with the approval of the company's board of directors. In an unexpected twist, despite the financial turmoil, Terraform Labs recently acquired Pulsar Finance, a cross-chain portfolio management company.
Meanwhile, founder Do-Kwon finds himself in custody in Montenegro, facing charges of falsifying travel documents. The uncertainty looms over his extradition.
Adding to the legal tangle, a US court has deemed the MIR and LUNA cryptocurrencies issued by Terraform Labs as securities, intensifying regulatory scrutiny. Additionally, a class action lawsuit in Singapore, filed by Julius Moreno Beltran and Douglas Gan, seeks justice for a consortium claiming a $57 million loss, further complicating Terraform Labs' legal landscape.
This is not the first time Terraform Labs has been under investigation; South Korean authorities probed the company after the collapse of LUNA and USTC, but no conclusive evidence was found. In February 2023, the SEC charged Terraform Labs and former CEO Do Kwon with criminal charges, alleging a multi-billion dollar scam between April 2018 and May 2022, branded as "crypto schemes."
The Terra LUNA fiasco, triggered by a fatal design flaw, saw both LUNA and USTC crumble in May 2022. Panic ensued as holders withdrew en masse, leading to a cascading collapse of the entire ecosystem. Despite this, USTC still holds the 9th position among stablecoins, boasting a market cap of approximately $220 million, though its value plummeted by 98%.
It is crucial to note that while this narrative aims to provide accurate and timely information, readers are advised to conduct their research due to the volatile nature of cryptocurrencies. Voice of Crypto disclaims responsibility for any missing facts or inaccuracies, emphasizing the need for independent financial decision-making in the realm of highly volatile crypto assets.
#terraformlabs #Crypto2024 #cryptocurrency #bankrupt #BinanceSquare
- Filed under Chapter 11 by CEO Chris Amani, with the approval of the Board of Directors.
2. Financial Snapshot:
- Assets valued at $100 million, while liabilities amount to $500 million.
3. Founder's Legal Situation:
- Founder Do Kwon remains incarcerated in Montenegro for alleged involvement with falsified documents.
4. USTC Stablecoin Status:
- Despite the company's financial challenges, USTC, Terraform Labs' stablecoin, still holds the 9th position in market cap among stablecoins.
After engaging in an intricate game of cat and mouse with various agencies for nearly 20 months, Do Kwon and Terraform Labs have, at last, sought refuge in Chapter 11 Bankruptcy, officially filing with Delaware authorities on January 21, 2024. This strategic move comes after the company's notorious USTC and LUNA projects collapsed in 2022, causing a global loss of over $64 billion in assets.
Terraform Labs, the orchestrator of this financial drama, has made its bankruptcy filings under the United States Chapter 11 Bankruptcy, attributing the decision to a significant disparity between its assets and liabilities. According to the filed documents, the company's assets total $100 million, while liabilities soar to nearly $500 million, with a creditor count ranging between 100 and 199.
Legal proceedings were executed under the guidance of Chris Amani, Terraform Labs' CEO, with the approval of the company's board of directors. In an unexpected twist, despite the financial turmoil, Terraform Labs recently acquired Pulsar Finance, a cross-chain portfolio management company.
Meanwhile, founder Do-Kwon finds himself in custody in Montenegro, facing charges of falsifying travel documents. The uncertainty looms over his extradition.
Adding to the legal tangle, a US court has deemed the MIR and LUNA cryptocurrencies issued by Terraform Labs as securities, intensifying regulatory scrutiny. Additionally, a class action lawsuit in Singapore, filed by Julius Moreno Beltran and Douglas Gan, seeks justice for a consortium claiming a $57 million loss, further complicating Terraform Labs' legal landscape.
This is not the first time Terraform Labs has been under investigation; South Korean authorities probed the company after the collapse of LUNA and USTC, but no conclusive evidence was found. In February 2023, the SEC charged Terraform Labs and former CEO Do Kwon with criminal charges, alleging a multi-billion dollar scam between April 2018 and May 2022, branded as "crypto schemes."
The Terra LUNA fiasco, triggered by a fatal design flaw, saw both LUNA and USTC crumble in May 2022. Panic ensued as holders withdrew en masse, leading to a cascading collapse of the entire ecosystem. Despite this, USTC still holds the 9th position among stablecoins, boasting a market cap of approximately $220 million, though its value plummeted by 98%.
It is crucial to note that while this narrative aims to provide accurate and timely information, readers are advised to conduct their research due to the volatile nature of cryptocurrencies. Voice of Crypto disclaims responsibility for any missing facts or inaccuracies, emphasizing the need for independent financial decision-making in the realm of highly volatile crypto assets.
#terraformlabs #Crypto2024 #cryptocurrency #bankrupt #BinanceSquare
ššš Celsius Loan Creditors Consider Appeal Against Restructuring Plan Over Alleged Unfair Treatment
Creditors who lent funds through Celsius, a #bankrupt #cryptocurrency lender, are expressing dissatisfaction with the proposed restructuring plan, citing concerns about its fairness and treatment of their claims.
Reports indicate that these creditors believe the current plan favors certain creditors over others, potentially resulting in lower recoveries for users of Celsius loan services.
Key objections to the restructuring plan include perceived disparities in the allocation of funds. Critics argue that the court's decision to allocate $225 million for company capital rather than repaying bonds is unjust, highlighting discrepancies in recovery rates among different creditor groups.
Creditors who provided loans through Celsius are considering filing appeals against the plan, citing unfair treatment. The Bankruptcy Code imposes strict deadlines for appeals, typically requiring filing within 14 days of the judgment. However, extensions may be possible under certain circumstances.
One of the main grievances from loan creditors is the unequal treatment between users of Celsius Earn and Celsius Loan services. Earn creditors reportedly received higher recoveries compared to loan creditors, leading to dissatisfaction among the latter.
Another concern is the allocation of bankruptcy estate funds to capitalize a new #Mining entity instead of enhancing creditors' recoveries. Loan creditors feel their interests are not being adequately addressed in this decision.
The uncertainty around the restructuring plan and potential appeals raises questions about creditors' crypto holdings' true value and their return process. Creditors are seeking legal advice to challenge the plan's fairness, which could impact the bankruptcy case and the broader #CryptoCommunity .
#CryptoNewsšš°š«
Creditors who lent funds through Celsius, a #bankrupt #cryptocurrency lender, are expressing dissatisfaction with the proposed restructuring plan, citing concerns about its fairness and treatment of their claims.
Reports indicate that these creditors believe the current plan favors certain creditors over others, potentially resulting in lower recoveries for users of Celsius loan services.
Key objections to the restructuring plan include perceived disparities in the allocation of funds. Critics argue that the court's decision to allocate $225 million for company capital rather than repaying bonds is unjust, highlighting discrepancies in recovery rates among different creditor groups.
Creditors who provided loans through Celsius are considering filing appeals against the plan, citing unfair treatment. The Bankruptcy Code imposes strict deadlines for appeals, typically requiring filing within 14 days of the judgment. However, extensions may be possible under certain circumstances.
One of the main grievances from loan creditors is the unequal treatment between users of Celsius Earn and Celsius Loan services. Earn creditors reportedly received higher recoveries compared to loan creditors, leading to dissatisfaction among the latter.
Another concern is the allocation of bankruptcy estate funds to capitalize a new #Mining entity instead of enhancing creditors' recoveries. Loan creditors feel their interests are not being adequately addressed in this decision.
The uncertainty around the restructuring plan and potential appeals raises questions about creditors' crypto holdings' true value and their return process. Creditors are seeking legal advice to challenge the plan's fairness, which could impact the bankruptcy case and the broader #CryptoCommunity .
#CryptoNewsšš°š«
āļø Mt.Gox Begins Distributing Compensation to Clients on Kraken
Users of the cryptocurrency exchange Kraken report receiving $BTC and $BCH from the #bankrupt company.
š½ Bitcoin responded with a 1% drop, while Bitcoin Cash fell by approximately 3%.
Meanwhile, users of Bitstamp have not yet confirmed the receipt of assets.
Users of the cryptocurrency exchange Kraken report receiving $BTC and $BCH from the #bankrupt company.
š½ Bitcoin responded with a 1% drop, while Bitcoin Cash fell by approximately 3%.
Meanwhile, users of Bitstamp have not yet confirmed the receipt of assets.