Terraform Labs Declares Chapter 11 Bankruptcy Amid Growing Legal Challenges
Summary:
Terraform Labs, led by Do Kwon and known for its TerraUSD stablecoin, has declared bankruptcy in the U.S. The firm officially applied for Chapter 11 bankruptcy on January 21st. The company's CEO, Chris Amani, emphasized that this step is essential to deal with the remaining legal challenges while continuing to work towards their objectives. The company estimates its assets and liabilities each to lie between $100 million to $500 million.
Terraform Labs, the firm previously known for its TerraUSD stablecoin, headed by Do Kwon, has declared insolvency proceedings in the United States. On January 21, the firm officially lodged a Chapter 11 bankruptcy application with the United States Bankruptcy Court, District of Delaware. The news of Terraform Labs' insolvency application broke on the same date. Chris Amani, the CEO of Terraform Labs, issued a statement:
"In the face of trials and tribulations, the Terra community and its ecosystem have exhibited formidable resilience", He added, "This move is mandatory for us to continue to strive towards our collective objectives while dealing with remaining legal hurdles".
He further emphasized, "This maneuver safeguards our capacity to keep collaborating with the community on foundation, cutting-edge tools and services, and further overall ecosystem backing. We've previously conquered considerable obstacles. Despite great adversities, the ecosystem not only persevered but also expanded in novel ways after the post-depeg. We anticipate the successful culmination of the pending legal processes”.
The fallen company asserts its liabilities and assets are both projected to be anywhere between $100 million and $500 million. More details will be reported as this story evolves.
Published At
1/22/2024 5:29:09 AM
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