Terraform Labs reached a $4.47 billion settlement agreement with the SEC in June and subsequently announced that it would terminate its business. The U.S. court on Thursday approved that Terraform Labs can end its business through bankruptcy proceedings. Terraform Labs estimates that as part of the bankruptcy liquidation, it will be able to Victim payouts ranged from $184.5 million to $442.2 million. (Preliminary summary: LUNA victims are also compensated, SEC announced Terraform investment/creditor compensation announcement) (Background supplement: Do Kwon’s escape accomplice? The Prime Minister of Montenegro was revealed to be an early investor in Terra, holding 750,000 LUNA) Public chain ecological algorithm The stablecoin UST and the native token LUNA exploded in May 2022, causing global investors to lose US$40 billion. Developer Terraform Labs and founder Do Kwon were sued by the U.S. Securities and Exchange Commission (SEC) in February last year. Terraform Labs then It filed for bankruptcy in January this year. In April this year, a New York federal jury found Do Kwon and Terraform Labs guilty of fraud. After losing the case, Do Kwon and Terraform Labs initially refused to pay the $5.3 billion fine requested by the SEC and argued that the SEC had no right to sue. In mid-June, Terraform Labs and Do Kwon formally reached a settlement agreement with the SEC, agreeing to pay fines of US$4.47 billion and US$200 million respectively. Terraform Labs was approved for bankruptcy. Later, Terraform Labs CEO Chris Amani announced that the company would officially dissolve and asked the community to take over projects within the Terra ecosystem. According to Reuters, the U.S. Bankruptcy Court finally approved on Thursday that Terraform Labs could go through bankruptcy proceedings. Liquidate its business. U.S. Bankruptcy Court Judge Brendan Shannon approved Terraform Labs' bankruptcy plan at a hearing in Wilmington, Delaware, praising it as a "welcome alternative" that would avoid further investor losses. litigation. How much money is available to compensate victims? Although Terraform Labs agreed to pay a $4.47 billion penalty to the SEC, according to the settlement agreement, the SEC will receive little or no penalty because the SEC agreed to pay creditors and injured investments only if Terraform Labs satisfies the bankruptcy liquidation process. Payments will only be made after the claimant's compensation is paid, and Terraform Labs said it is currently unable to estimate the total amount of cryptocurrency losses that will be paid out in the liquidation process. However, Terraform estimates that as part of its bankruptcy liquidation, the company will be able to pay between $184.5 million and $442.2 million to its cryptocurrency buyers and other interested parties, but the exact compensation plan has yet to be further officially explained. When Terraform Labs filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in Delaware in January, it estimated its assets and liabilities ranged from $100 million to $500 million and the number of creditors ranged from 100 to 199. While Terraform Labs was approved for bankruptcy liquidation, the fate of Do Kwon is still unclear. He was arrested in Montenegro (Republic of Montenegro) in March last year. He is currently facing relevant criminal charges in the United States and South Korea, and both countries are seeking his extradition. , but there has been no final ruling on his extradition case so far. Related reports SEC rejects Ripple’s request to reduce fine! Reason: The nature of Terra's settlement is different from the "LUNA incident". Terra settled with the SEC for a sky-high price and announced its dissolution: We lost... I hope the community can take over. LUNA plummeted 20% in a week. Terra settled with the SEC: agreed to pay a sky-high fine of US$4.47 billion, Do Kwan was Fine of 200 million mg〈Terraform was approved by the court for liquidation. How much compensation can LUNA and UST investors receive? 〉This article was first published in DongZu BlockTempo "DongZu DongTen - the most influential blockchain news media".