Home » Terraform Labs Seeks U.S. chapter defend

Terraform Labs Seeks U.S. chapter defend

by CoinVeem

Terraform Labs, the Singapore-based firm behind the Terra blockchain and its native cryptocurrency LUNA, has filed for Chapter 11 chapter safety in america. 

Terraform Labs’ chapter filing exhibits as much as US$500 million in estimated liabilities and property. 

Based by Kwon Do-hyung, a South Korean nationwide higher generally known as Do Kwon, Terraform Labs has been on the heart of a media firestorm following the collapse of its stablecoin, UST, in Could 2022. 

Terraform Labs noticed its TerraUSD (UST) stablecoin and Luna cryptocurrency lose practically all their worth within the collapse, which drew consideration to the inherent dangers in algorithmic stablecoins, which TerraUSD was.

This occasion triggered billions of {dollars} in investor losses and led to the bankruptcies of high-profile cryptocurrency companies, together with Celsius Community and Three Arrows Capital.

Kwon was arrested in a Montenegro airport final March when he tried to board a flight to Dubai with a faux passport. 

Kwon has been charged with fraud by the U.S. authorities. The Securities and Trade Fee has agreed to delay Kwon’s trial to March 25, giving the Terra founder extra time to be extradited to the U.S.

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