PODGORICA, MONTENEGRO – JUNE 16: Do Kwon is taken outdoors of courtroom on June 16, 2023 in Podgorica, Montenegro. Cryptocurrency TerraUSD and its companion token Luna collapsed in 2022, wiping out roughly 40 billion USD from the cryptocurrency market and Do Kwon, the founder was charged with fraud by American prosecutors following his arrest in Montenegro. (Picture by Filip Filipovic/Getty Pictures)
Filip Filipovic | Getty Pictures Information | Getty Pictures
Terraform Labs, the corporate behind the stablecoin TerraUSD, which collapsed and roiled cryptocurrency markets, filed for Chapter 11 chapter in the US, in accordance with courtroom papers filed on Sunday.
Singapore-based Terraform labs, in a submitting with the chapter courtroom in Delaware, listed property and liabilities within the vary of $100 million to $500 million.
Just lately, a federal decide postponed the trial of the U.S. Securities and Trade Fee (SEC) in opposition to the corporate and its co-founder, Do Kwon, over an alleged $40 billion cryptocurrency fraud.
Kwon and Terraform Labs had been held answerable for two cryptocurrencies whose collapse brought on turbulence in crypto markets around the globe in 2022.
The SEC’s civil case in opposition to Terraform and Kwon is linked to the collapse of TerraUSD, a “stablecoin” designed to keep up a continuing $1 value, and the extra conventional token Luna, which carefully related to TerraUSD.
Each cryptocurrencies misplaced an estimated $40 billion or extra when TerraUSD failed to keep up its $1 peg in Might 2022.
