Happycoin.club - Terraform Labs, the company behind the TerraUSD and Luna tokens, is preparing to close after a US court approved its bankruptcy proceedings. During a hearing in Wilmington, Delaware, Bankruptcy Judge Brendan Shannon called Terraform Labs' plan a "welcome alternative" to a lengthy trial.

Terraform Labs filed for bankruptcy in January 2024. In June, the company paid a $4.47 billion fine to the U.S. Securities and Exchange Commission. At the same time, the company's CEO said that Terraform Labs was ready to cease operations.

It is known that after the bankruptcy procedure is completed, the company will distribute between $184.5 and $442.2 million among its creditors.

Recall that the US Securities and Exchange Commission accused Terraform Labs and its co-founder Do Kwon of defrauding investors with a multi-billion dollar cryptocurrency scam. The collapse of Terraform's TerraUSD and Luna wiped out investors' assets worth about $60 billion.

Terraform Labs co-founder Do Kon spent months on the run from authorities, moving around the country. He was arrested in Montenegro in the spring of 2023 and has been held there ever since, awaiting extradition to the United States or South Korea. The Supreme Court of Montenegro is expected to decide in September which country to send him to for further proceedings.