Terraform Labs Files for Bankruptcy Protection in the US

Terraform Labs, the company once known for its algorithmic stablecoin TerraUSD (UST), has filed for Chapter 11 bankruptcy protection in the United States, according to the documents filed yesterday (Sunday) with the Bankruptcy Court for the District of Delaware.

The filing showed that the now-defunct crypto company has liabilities in the range of $100 million to $500 million. Its estimated assets also match the liabilities to be in the same range. The company’s unsecured creditors include several names, like TQ Ventures, a U.S.-based digital assets investment fund, and Standard Crypto, a San Fransisco-based venture fund.

“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 filing stated.

“The filing will allow TFL to execute on its business plan while navigating ongoing legal proceedings, including representative litigation pending in Singapore and U.S. litigation.”

Founded by Do Kwon, the Terra Money ecosystem collapsed in 2022. The impact of the collapse affected a few other companies due to their exposure to the algorithmic stablecoin.

Expect ongoing updates as this story evolves.

Terraform Labs, the company once known for its algorithmic stablecoin TerraUSD (UST), has filed for Chapter 11 bankruptcy protection in the United States, according to the documents filed yesterday (Sunday) with the Bankruptcy Court for the District of Delaware.

The filing showed that the now-defunct crypto company has liabilities in the range of $100 million to $500 million. Its estimated assets also match the liabilities to be in the same range. The company’s unsecured creditors include several names, like TQ Ventures, a U.S.-based digital assets investment fund, and Standard Crypto, a San Fransisco-based venture fund.

“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 filing stated.

“The filing will allow TFL to execute on its business plan while navigating ongoing legal proceedings, including representative litigation pending in Singapore and U.S. litigation.”

Founded by Do Kwon, the Terra Money ecosystem collapsed in 2022. The impact of the collapse affected a few other companies due to their exposure to the algorithmic stablecoin.

Expect ongoing updates as this story evolves.