Terraform Labs says bankruptcy to help appeal SEC suit

Do Kwon’s Terraform Labs — the company behind the now-defunct stablecoin TerraClassicUSD (USTC) — says its decision to file for Chapter 11 bankruptcy protection may help it appeal a lawsuit it faces from the Securities and Exchange Commission
In a Jan. 30 filing, Terraform Labs CEO Chris Amani said a typical appeal against the SEC would require it to front a “supersedeas bond” of 110% of the total judgment before it could proceed. The firm's bankruptcy protections could now allow the firm to appeal without needing to post such a bond.

Terraform Labs CEO says a Chapter 11 case is critical to appealing the SEC’s enforcement action. Source: PACER
Terraform’s appeal will attempt to argue that the firm’s crypto assets are not legally securities and the SEC’s enforcement action therefore doesn’t fall under the agency’s jurisdiction. 
If successful, Amani claimed the appeal would “eliminate the single largest claim” against Terraform Labs and be a significant step forward in seeing creditors made whole. Terraform Labs filed for bankruptcy on Jan. 21 in a Delaware Bankruptcy Court. 

Meanwhile, the SEC is attempting to have a case it launched against a crypto firm called Debt Box thrown out after it faced possible sanctions for fudging details of its case.#Write2Earn #TrendingTopic #Terra $USTC $LUNA