{"id":69482,"date":"2024-01-22T05:16:33","date_gmt":"2024-01-22T09:16:33","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=69482"},"modified":"2024-01-22T05:16:38","modified_gmt":"2024-01-22T09:16:38","slug":"terraform-labs-files-for-chapter-11-bankruptcy-protection","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/terraform-labs-files-for-chapter-11-bankruptcy-protection\/","title":{"rendered":"Terraform Labs Files for Chapter 11 Bankruptcy Protection"},"content":{"rendered":"\n

Do Kwon's Terraform Labs has initiated the process of Chapter 11 bankruptcy protection<\/a> in the United States; the firm claims to have between $100 million and $500 million in estimated assets and liabilities.<\/p>\n\n\n\n

\"Terraform
Terraform Labs Files for Chapter 11 Bankruptcy Protection<\/figcaption><\/figure>\n\n\n\n

A January 21 filing with the United States Bankruptcy Court for the District of Delaware\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> stated that the company had petitioned for Chapter 11 bankruptcy protection, citing estimated liabilities and assets ranging from $100 million to $500 million.<\/p>\n\n\n\n
\"\"

Kwon\u2019s Terraform Labs filed for bankruptcy protection on Jan. 21. Source: CourtListener<\/figcaption><\/figure>\n\n\n\n

Chris Amani, CEO of Terraform Labs, said in a separate statement, “The Terra community and ecosystem have demonstrated unprecedented resilience in the face of adversity; this action is necessary to allow us to continue working toward our collective goals while resolving the outstanding legal challenges.”<\/p>\n\n\n\n

\n

\u201cWe 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.\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n

Based on the court filing, the estimated liabilities and assets of the defunct firm range from $100 million to $500 million, with the latter amounting to the former.<\/p>\n\n\n\n

Four days before the bankruptcy filing, the U.S. Securities and Exchange Commission<\/a> (SEC) granted Kwon's legal team a request to prolong the proceedings by postponing his forthcoming fraud trial until March 25.<\/p>\n\n\n\n

The Terra ecosystem of Kwon failed in May of 2022. The location of the firm's co-founder remained unknown until March 2023, when he was apprehended in Montenegro on suspicion of attempting to exit the country using forged travel documents shortly after the firm imploded.<\/p>\n\n\n\n

In February 2023, the SEC initially lodged civil charges against Terraform Labs and Kwon. An alleged “multibillion-dollar crypto asset securities fraud” involving the tokens formerly referred to as both parties coordinated UST and Terra (LUNA).<\/p>\n\n\n\n

South Korea <\/a>and the United States are both pursuing Kwon's extradition. Speculation has increased regarding the possibility that Kwon will serve multiple sentences in both nations.<\/p>\n\n\n\n

In the nation where the preponderance of his alleged crimes occurred, the extradition of Kwon to South Korea could result in a forty-year prison term.<\/p>\n","protected":false},"excerpt":{"rendered":"

Do Kwon’s Terraform Labs has initiated the process of Chapter 11 bankruptcy protection in the United States; the firm claims to have between $100 million and $500 million in estimated assets and liabilities. A January 21 filing with the United States Bankruptcy Court for the District of Delaware stated that the company had petitioned for […]<\/p>\n","protected":false},"author":12,"featured_media":69490,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[12779,9684,8081,1305],"class_list":["post-69482","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-chapter-11-bankruptcy","tag-do-kwon-2","tag-terraform-labs-2","tag-united-states"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/01\/image-93.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/69482","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=69482"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/69482\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/69490"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=69482"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=69482"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=69482"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}