Terraform Labs seeks bankruptcy protection as tokens, including LUNA, decline.
Terraform Labs, the creator of the stablecoin TerraUSD (UST), has filed for bankruptcy protection in the United States, as reported in this article.
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Terraform Labs Seeks Bankruptcy Protection
In the midst of financial turmoil, Singapore-based Terraform Labs has turned to the bankruptcy court in Delaware, USA for assistance. Official documents indicate estimated assets and liabilities ranging from $100 million to $500 million.
Do Kwon Trial Delayed
A recent federal judge in the United States has just postponed the trial between the Securities and Exchange Commission (SEC) and Terraform Labs and its co-founder Do Kwon. The SEC's $40 billion cryptocurrency fraud allegations against the company will now take longer to reach a resolution.
Recalling the Tragedies of 2022
In May 2022, Terraform Labs' two cryptocurrencies, TerraUSD (UST) and Luna, became the epicenter of global cryptocurrency turbulence that year, ultimately leading to another major catastrophe, the downfall of FTX.
A Recap of the Troubled Year 2022
Is SBF the UST Killer? FTX Founder Faces Market Manipulation Investigation, Do Kwon Comments: Is it You Who Ruined Terra?
The SEC's lawsuit is directly related to the collapse of TerraUSD, a stablecoin that failed to maintain its value of $1, and the subsequent collapse of Luna, closely tied to it. This failure resulted in over $40 billion in devastating losses.
The Past and Future of DeFi Stablecoins: Reflections After the Terra UST Crash
Decline of Related Tokens like LUNA
Terraform Labs' related tokens, LUNA, LUNC, and USTC, have all experienced a decline of over 5%:
