Terraform Labs files for Chapter 11 bankruptcy in Delaware
Terraform Labs Pte. Lieutenant. filed for Chapter 11 bankruptcy in the Delaware County Bankruptcy Court on Jan. 21, according to the court's website.
The company's liabilities are estimated to range from $100 million to $500 million, and the volume of its assets lies in the same range, Bloomberg reports.
Terraform Labs is the company behind the algorithmic stablecoin TerraUSD and its sister cryptocurrency Luna, both of which collapsed in May 2022. The U.S. Securities and Exchange Commission charged the firm and then-CEO Kwon Do-hyun with fraud in February 2023.
Kwon was arrested last March in Montenegro for attempting to travel with false documents. The former head of Terra LUNA, -4.84% is awaiting extradition from the country, and the U.S. District Court for the Southern District of New York postponed the SEC's lawsuit against Terraform and Kwon until late March at Kwon's request.
