Singapore-based Terraform Labs (TFL), the corporate behind digital belongings TerraUSD (UST) and Luna, filed for Chapter 11 bankruptcy in Delaware following the collapse of its cryptocurrencies in 2022.

Terraform Labs, which confirmed its Chapter 11 chapter safety submitting, mentioned the submitting is “a strategic step that will enable it to continue its operations and support litigation pending in Singapore and U.S. litigation involving the Securities and Exchange Commission.” The outfit additionally mentioned it will “meet all financial obligations to employees and vendors during the Chapter 11 case” with out requiring extra financing.

In response to a court document filed today, Terraform Labs’ estimated belongings and liabilities vary from $100 million to $500 million, whereas the variety of collectors is between 100 and 199.

Terraform Labs plans to proceed increasing its Web3 enterprise, based on its assertion. The corporate lately acquired Pulsar Finance, a cross-chain portfolio supervisor and knowledge supplier, and launched Station v3, a cryptocurrency pockets, earlier this month.

“The Terra community and ecosystem have shown unprecedented resilience in the face of adversity, and this action is necessary to allow us to continue working toward our collective goals while resolving the legal challenges that remain outstanding,” mentioned Chris Amani, CEO of Terraform Labs.

Based in 2018, Terraform Labs worn out at the very least $40 billion in market worth and collapsed the crypto business in Might 2022.

The chapter submitting comes 4 days after the U.S. SEC agreed to postpone the civil trial against Terraform Labs and the co-founder Do Kwon over an alleged $40 billion cryptocurrency fraud to March 25 from January 29. Kwon is at the moment in custody in Montenegro for utilizing falsified journey paperwork to depart the nation in March. The Terraform Labs co-founder could possibly be extradited to the U.S. or South Korea in March after the ultimate ruling on extradition, which is able to relaxation with Montenegro’s Justice Minister.

In February last year, the U.S. SEC charged Kwon and Terraform Labs with defrauding the U.S. investors who bought the digital belongings Terra USD and Luna.

Kwon owns a 92% stake in Terraform Labs, and Daniel Shin, one other co-founder of the corporate, has an 8% in TFL, per the courtroom submitting.