Terraform Labs received court approval to cease operations during a bankruptcy hearing, which resolved the SEC lawsuit.
In the most recent bankruptcy hearing, Terraform Labs was granted court consent to cease operations, which attracted the attention of investors. The firm’s plan, which a US bankruptcy judge authorized after its settlement with the US Securities and Exchange Commission, has been approved. It is worth noting that the news has seemingly increased market sentiment, as evidenced by the recent increase in the prices of LUNA and LUNC.
Court grants Terraform Labs permission to cease operations
According to a recent report by Reuters, Terraform Labs has been granted legal authorization to cease operations. Judge Brendan Shannon approved the firm’s plan to liquidate its assets in the most recent bankruptcy hearing, which sparked investors’ optimism.
The firm’s resolution with the US SEC was basis for the approval
It is important to note that the agency has previously accused the company and its founder, Do Kwon, of defrauding investors following the TerraUSD and LUNA collapses in 2022. The merchants have suffered losses of approximately $40 billion due to the collapse.
In the interim, the Judge has referred to the approval as a “welcome alternative” to the protracted litigation. Specifically, the sanction would enable the company to liquidate its remaining assets, with an estimated payout of $184.5 million to $442.2 million to investors and other stakeholders.
The firm, however, stated that the precise amount of eligible crypto losses is still unknown, saying that it is “impossible to estimate” the total losses that could be returned. Terraform Labs has consented to a $4.47 billion settlement with the Securities and Exchange Commission (SEC). However, the agency does not anticipate receiving substantial money from this agreement.
The regulator consented to receive the payment only after the crypto losses claims are compensated during liquidation. This action underscores the agency’s recognition of the substantial losses suffered by investors.
Prices of LUNC and LUNA Increase
At the time of this writing, the Terra Luna Classic price was trading at $0.00008743, representing an increase of over 8% from its 24-hour high of $0.00008829. Additionally, its trading volume increased by nearly 85% to $26.17 million. Concurrently, the trading volume of LUNA increased by 42% to $47.12 million, while its price rose by approximately 9% to $0.4033.
The LUNA has experienced a 24-hour high and low of $0.4092 and $0.3711, respectively. Additionally, LUNC and LUNA Futures Open Interests increased by over 28% and 27%, respectively, according to CoinGlass data, suggesting that market confidence is rising.
Notably, a recent price analysis conducted by LUNC indicates that the cryptocurrency can reach $0.000135 if it breaches a critical resistance area. This bullish forecast, issued in the context of Terraform Labs’ bankruptcy proceedings, appears to have improved market sentiment, as evidenced by the recent price spike.
Furthermore, numerous developments in the Terra ecosystem have positively impacted the market sentiment. For example, Terra Luna Classic has effectively implemented the v3.1.5 upgrade, which emphasizes security and other critical components of the ecosystem.
