Bankruptcy Application from the Company Behind LUNA

Cryptocurrency world in May 2022 Terra (LUNA) and stablecoin TerraUSD (UST) was shaken by the giant collapse. This collapse 40 billion dollars Do-Kwon, one of the founders of Terraform Labs, the company behind these cryptocurrencies, was imprisoned in Montenegro last year. In countries such as the USA and South Korea, he was also accused of fraud and a prison sentence was requested.

Today, there were new developments about Terraform Labs. The company is in the USA filing for bankruptcy found.

The company wants to continue its operations in the Web3 space

The “Chapter 11 bankruptcy filing” was filed in the state of Delaware. The company took this step as “will enable it to continue its activities and a strategic move to support litigation in places such as the US and Singapore” he described. It is already a type of bankruptcy filing that will allow them to continue operations in “Chapter 11”. Terraform Labs said it will continue to grow its Web3 business. It had recently launched a cryptocurrency wallet called Station v3.

Estimated assets of Terraform Labs, according to court documents 100 to 500 million between dollars. Additionally, the company says that its debts are at these levels. It was also reported that the number of creditors was between 100 and 199.

Terraform Labs’ LUNA token was very popular in late 2021 and early 2022. It even reached levels of $119. However, it suddenly collapsed in May 2022, losing 99% of its value within 48 hours. This follows the collapse of stablecoin UST, which normally should not have fallen. UST, which also belongs to the same company, dropped to $0.02, although it should have remained constant at $1. What happened caused billions of dollars to be lost.

LUNA is trading at $0.60, down around 8% at the time of writing. Bitcoin is around $40,807.

For what happened in the LUNA collapse: