Terraform Labs, the company behind TerraUSD (UST) and Luna, has received court approval to wind down its operations in bankruptcy after settling with the U.S. Securities and Exchange Commission (SEC).
- U.S. Bankruptcy Judge Brendan Shannon called the plan “a welcome alternative to further litigation over investors’ losses.”
- This development comes three months after Terraform and co-founder Do Kwon reached a $4.47 billion settlement with the SEC to resolve fraud charges related to the collapse of the Terra ecosystem.
- Terraform has promised to pay investors and other creditors in the bankruptcy process, so the SEC may not get anything.
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