Terraform Labs to Sell 4 Businesses During Bankruptcy
Terraform Labs, a bankrupt crypto company, will sell four firms in a $4.5 billion settlement with the SEC.
Pulsar Finance, Station, Enterprise, and Warp are Terraform Labs' four companies it wants to sell.
Terraform bought Pulsar Finance in November 2023 before declaring Chapter 11 bankruptcy in January.
Enterprise debuted in November 2022.
Terraform Labs attracted recognition for Terra Luna Classic (LUNC), a cryptocurrency tied to TerraUSD.
UST lost its peg to the US dollar in May 2022, causing USTC and LUNC values to plummet. Both tokens have lost almost all value since then.
The collapse of Terra wiped away approximately $40 billion from the crypto market and brought down other crypto hedge funds that had supplied collateral to the business.
A jury convicted Terraform Labs and co-founder Do Kwon of misleading investors in an SEC civil action in April 2024.
The company's token, Terra, trades at $0.37 without any change after the sale was announced.
The coin has dropped significantly from its May 2022 top of $18.87.
Terraform Labs' investment banker, CAVU Securities, welcomes bidders to discuss acquisitions.
Judge Approves $4.5B Terraform, Do Kwon Settlement
U.S. District Court Judge Jed Rakoff of the SDNY authorized a settlement this month that would cost Terraform Labs and Kwon $4.5 billion in disgorgement and civil penalties.
They will also be permanently barred from trading “crypto asset securities,” including Terra tokens.
The SEC first proposed a $5.3 billion penalty, which Terraform Labs opposed, arguing for a $1 million maximum punishment.
On June 6, Kwon and Terraform Labs' lawyers accepted the SEC's amended settlement offer of $4.5 billion.
Kwon, who is in Montenegro awaiting extradition, did not attend the settlement trial.
Terraform Labs, under Chapter 11 bankruptcy, must meet the settlement's large financial commitments.
Terraform Labs' CEO, Chris Amani, said that the firm had $150 million in assets.
#LUNC #Terraform #TerraformLabs $LUNC
