Do Kwon's Terraform Labs, the developer of the now-defunct stablecoin TerraUSD (UST), has filed for bankruptcy protection in the United States.
The company filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware, with estimated debts and assets between $100 million and $500 million, according to a January 21 report. filing.
“The Terra community and ecosystem has shown unprecedented resilience in the face of adversity, and as we continue to work towards our common goals while resolving outstanding legal challenges, , this action is necessary,” said Chris Amani, CEO of Terraform Labs. Another statement.
“We have overcome significant challenges before, and against long odds, the ecosystem survived and even grew in new ways post-depeg. Outstanding legal proceedings are successfully resolved. I’m looking forward to it.”
The defunct company had estimated liabilities of $100 million to $500 million and estimated assets of the same amount, according to court filings.
The bankruptcy filing comes just four days after the US SEC agreed to postpone Do Kwon's upcoming fraud trial to March 25, following a request for a delay from Koun's lawyers. Ta.
Related: SEC joins Do Kwon's request to start trial after extradition to US
Kwon's TeraMoney ecosystem collapsed in May 2022. Shortly after the company collapsed, co-founder Do Kwon's whereabouts remained unknown until he was arrested in Montenegro in March 2023 after attempting to leave the country using fake travel documents.
The SEC first filed civil charges against Terraform Labs and Kwon in February 2023. The parties allegedly orchestrated a “multi-billion dollar crypto securities fraud” involving the tokens formerly known as UST and Terra (LUNA).
The United States and South Korea are seeking Kwon's extradition. There is growing speculation that Kwon could face multiple sentences in both countries.
If Kwon is extradited to South Korea, where he is said to have committed most of the crimes, he could be sentenced to 40 years in prison.
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