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Do Kwon’s Terraform Labs has filed for Chapter 11 bankruptcy protection in Delaware, estimating between $100 million to $500 million in both assets and liabilities.
In the January 21 filing, the company said it plans to settle debts owed to employees and vendors without seeking additional financing.
The company also says that filing for bankruptcy will allow it to navigate ongoing legal proceedings in Singapore and the US.
Some of the unsecured creditors mentioned in the filing include Standard Crypto Venture and TQ Ventures.
Terraform Labs To Expand Web3 Offerings
Terraform Labs also intends to expand its offerings in the Web3 industry according to its CEO, Chris Amani. The executive said the filing will protect its goal of working with the community on infrastructure, innovative tools, and products.
The US Securities and Exchange Commission (SEC) recently pushed the upcoming fraud trial of Terraform Labs’ former CEO, Do Kwon, to March 25.
Crypto in the courts: Today MLK Day the SEC joins / supports Do Kwon request to delay trial "based on Kwon’s counsel’s representations that he has consented to extradition to the US.. the SEC joins in Kwon’s request." Inner City Press is covering the case(s) pic.twitter.com/vr8QxiFOpl
— Inner City Press (@innercitypress) January 15, 2024
The securities regulator charged Kwon and the company with fraud in February last year. The charge involves allegations that he helped orchestrate a crypto asset securities fraud worth billions of dollars.
Do Kwon was arrested in Montenegro last year. He is currently fighting extradition to the US or South Korea.
Also Read
- Terraform Labs Co-Founder Do Kwon Appeals Extradition From Montenegro To US Or South Korea
- Terraform Labs Sues Citadel Securities, Says “Concerted Intentional Effort” Caused UST To Depeg
- Four-Month Imprisonment for Terra Co-Founder, Do Kwon, Over Alleged Passport Forgery
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