Terraform Labs, a Cryptocurrency Company, Declares Bankruptcy in the United States

Terraform Labs, a Cryptocurrency Company, Declares Bankruptcy in the United States


Terraform‍ Labs, the company responsible for the $40 billion crash in the crypto market due to the failure of ⁢its TerraUSD and ‌Luna stablecoins, has officially sought Chapter ⁤11 bankruptcy protection. According to Bloomberg, the estimated assets and liabilities of the crypto firm fall within⁢ the $100 million to $500 million ⁣range,​ with the number of ⁤creditors estimated ⁤to be‌ between ​100 and⁤ 199.​ Co-founder ⁤and former CEO Do Kwon holds⁢ the‍ majority shareholder position‌ at 92⁤ percent, with a registered address ⁢in Singapore, where⁤ the company is incorporated.

After Kwon and his associate ‌were ⁣arrested in Montenegro for using forged passports last‍ March, Kwon remains in custody until his extradition to ⁣the US, expected by mid-March, where he will face securities ⁤fraud charges. Additionally, Kwon is wanted in South Korea for similar ​charges, leading to his‌ family and some key Terraform Labs personnel…

2024-01-22 00:57:31
Source ​from www.engadget.com

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