The firm claims to have between $100 million and $500 million in both estimated assets and liabilities.
Do Kwon’s Terraform Labs, the company behind the now-defunct stablecoin TerraUSD has filed for bankruptcy in the United States.
In a Jan. 21 filing to the United States Bankruptcy Court for the District of Delaware, Terraform Labs officially filed for Chapter 11 bankruptcy protection.
Do Kwon’s Terraform Labs filed for bankruptcy protections on Jan. 21. Source: CourtListener
“The Terra community and ecosystem have shown unprecedented resilience in the face of adversity, and this action is necessary to allow us to continue working toward our collective goals while resolving the legal challenges that remain outstanding,” said Chris Amani, CEO of Terraform Labs in a statement.
“This step protects our ability to continue working with the community on infrastructure, innovative tools and products, and other ecosystem support. We have overcome significant challenges before and, against long odds, the ecosystem survived and even grew in new ways post-depeg; we look forward to the successful resolution of the outstanding legal proceedings.”
The defunct firm claims to have between $100 and $500 million in estimated liabilities, and the same amount in estimated assets.
This is a developing story, and further information will be added as it becomes available.