According to ChainCatcher, Reuters reported that Terraform Labs received approval from the U.S. Bankruptcy Court on Thursday to begin liquidation. U.S. Bankruptcy Judge Brendan Shannon approved Terraform's bankruptcy plan at a hearing in Wilmington, Delaware, calling it a "welcome alternative" to continuing litigation for investor losses. Terraform estimates that as part of the bankruptcy liquidation, it will be able to pay $184.5 million to $442.2 million to cryptocurrency investors and other stakeholders.

Earlier news, according to Terra's official announcement, the planned confirmation hearing for the Chapter 11 bankruptcy reorganization case of Terraform Labs Pte Ltd (TFL) and Terraform Labs Limited (TLL) has been scheduled for 10 a.m. Eastern Time on September 19, 2024 (10 p.m. Beijing time).