PODGORICA, MONTENEGRO – JUNE 16: Do Kwon is taken outside of court docket on June 16, 2023 in Podgorica, Montenegro. Cryptocurrency TerraUSD and its companion token Luna collapsed in 2022, wiping out approximately 40 billion USD from the cryptocurrency market and Do Kwon, the founder was billed with fraud by American prosecutors subsequent his arrest in Montenegro. (Photo by Filip Filipovic/Getty Pictures)
Filip Filipovic | Getty Photos Information | Getty Photographs
Terraform Labs, the enterprise powering the stablecoin TerraUSD, which collapsed and roiled cryptocurrency markets, filed for Chapter 11 bankruptcy in the United States, according to court papers submitted on Sunday.
Singapore-based Terraform labs, in a submitting with the bankruptcy courtroom in Delaware, listed belongings and liabilities in the vary of $100 million to $500 million.
Just lately, a federal judge postponed the demo of the U.S. Securities and Exchange Fee (SEC) against the company and its co-founder, Do Kwon, over an alleged $40 billion cryptocurrency fraud.
Kwon and Terraform Labs ended up held accountable for two cryptocurrencies whose collapse brought on turbulence in crypto markets around the environment in 2022.
The SEC’s civil case in opposition to Terraform and Kwon is linked to the collapse of TerraUSD, a “stablecoin” developed to keep a consistent $1 price, and the extra conventional token Luna, which closely connected with TerraUSD.
The two cryptocurrencies misplaced an believed $40 billion or far more when TerraUSD failed to sustain its $1 peg in Could 2022.
