Which will cause great damage to the cryptocurrency market in 2022 Terraform Labs Pte Ltd. officially filed with the US court and requested “Chapter 11” bankruptcy.
Terraform Labs chief executive officer (CEO) Chris Amani said that this move is important for the company and its investors. This move will allow the company to continue working towards its goals while also resolving ongoing legal issues.
According to documents filed in Delaware bankruptcy court on Jan. 21, Do Kwon Singapore-based Terraform Labs, founded by , has filed for Chapter 11 bankruptcy protection.
The company’s estimated assets and liabilities range from approximately $100 million to $500 million, according to court documents. Additionally, the number of creditors ranges from 100 to 199. Do Kwon is the majority shareholder, owning 92% of Terraform Labs. South Korean entrepreneur Daniel Shin owns the remaining shares of the Singapore-based company.
Chris Amani, Chief Executive Officer of Terraform Labs: The Terra community and ecosystem have demonstrated unprecedented resilience in the face of challenges, and this action was a necessary step to allow us to resolve ongoing legal challenges while ensuring we continue to work toward our shared goals.
NEWS CONTINUES BELOW
As we reported as Koinfinans.com, co-founder Do Kwon and Terraform Labs are being tried on fraud charges, while the lawsuit filed by the US Securities and Exchange Commission continues.
Judge Jed S. Rakoff ruled in favor of the U.S. SEC in December, acknowledging that Terraform Labs and Do Kwon violated the law by selling unregistered securities. However, the Judge rejected allegations that the company was trading in unregistered securities-based swaps. The SEC’s fraud case against Terraform must be heard by a jury.
Terra (LUNA) and Terra Classic (LUNC) prices lost value after this development.