- Terraform Labs (TFL) files for Chapter 11 bankruptcy in the U.S. amidst ongoing litigation with the SEC.
- Estimated assets and liabilities range between $100 million-$500 million.
- Upcoming trial and extradition proceedings for co-founder Do Kwon.
- TFL pledges to meet financial obligations during Chapter 11 without seeking additional financing.
- The company plans to continue expanding its Web3 offerings.
Terraform Labs’ Bankruptcy Filing Terraform Labs (TFL) has sought Chapter 11 bankruptcy protection in the U.S. amid a legal battle with the Securities and Exchange Commission (SEC). The company, facing the aftermath of the Terra blockchain’s collapse, filed for bankruptcy in Delaware, listing assets and liabilities between $100 million-$500 million. The filing ensures funds for distribution to unsecured creditors, with a commitment to meeting financial obligations without seeking additional financing.
Do Kwon’s Legal Challenges Co-founder Do Kwon, charged with defrauding investors following the collapse of the luna cryptocurrency and stablecoin terrausd, faces a delayed SEC trial. The case, now scheduled for April, awaits Kwon’s extradition proceedings from Montenegro. Terraform Labs CEO Chris Amani expressed optimism, stating, “We look forward to the successful resolution of the outstanding legal proceedings.”