Do Kwon’s Terraform Labs, the corporate behind the now-defunct TerraUSD (UST) stablecoin, has filed for chapter safety in the USA.
The agency filed for Chapter 11 chapter safety at the USA Chapter Courtroom for the District of Delaware, citing between $100 and $500 million in estimated liabilities and belongings, in line with a Jan. 21 submitting.
“The Terra group and ecosystem have proven unprecedented resilience within the face of adversity, and this motion is critical to permit us to proceed working towards our collective targets whereas resolving the authorized challenges that stay excellent,” mentioned Chris Amani, CEO of Terraform Labs in a separate assertion.
“Now we have overcome important challenges earlier than and, in opposition to lengthy odds, the ecosystem survived and even grew in new methods post-depeg; we look ahead to the profitable decision of the excellent authorized proceedings.”
In accordance with the courtroom submitting, the defunct agency has between $100 and $500 million in estimated liabilities and the identical quantity in estimated belongings.
The chapter submitting comes simply 4 days after the U.S. Securities and Change Fee (SEC) agreed to postpone Kwon’s upcoming fraud trial to March 25 after receiving a request from his authorized group to delay the proceedings.
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Kwon’s Terra ecosystem collapsed in Could 2022. Shortly after the agency imploded, the whereabouts of its co-founder remained unknown till he was arrested in Montenegro in March 2023 after making an attempt to make use of falsified journey paperwork to depart the nation.
The SEC first filed civil expenses in opposition to Terraform Labs and Kwon in February 2023. Each events have been alleged to have orchestrated a “multi-billion greenback crypto asset securities fraud” associated to the tokens previously generally known as UST and Terra (LUNA).
Each the U.S. and South Korea are searching for Kwon’s extradition. There was rising hypothesis that Kwon may very well be subjected to a number of sentences in each nations.
If Kwon is extradited to South Korea, he may face a 40-year jail sentence within the nation the place he’s alleged to have dedicated the vast majority of his crimes.
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