Terraform Labs thinks the bankruptcy process could protect the company from the U.S. Securities and Exchange Commission (SEC).
Terraform Labs CEO Chris Amani stated in the document submitted to the court that the company the bankruptcy process in order to preserve the value claimed by creditors and stakeholders and to challenge the sanction imposed by the SEC on the company. “critical” He said it was important.
Terraform Labs, the developer of the Terra ecosystem, filed for bankruptcy in the USA on January 21, and the value of its assets and liabilities $100-500 million He said it was in the range. The hearing regarding the bankruptcy process is expected to be held today.
Amani said that if Terraform successfully appeals the SEC’s allegations, the company’s liabilities will be reduced and that a positive financial outcome for creditors She said she could give birth.
SEC, “Billion dollar securities fraud with crypto assets” He filed a lawsuit against the company and its former CEO Kwon Do-hyeong in February 2023 for what he did.