Terraform Labs Files for Bankruptcy Protection
Terraform Labs, the company responsible for the former TerraUSD (UST) stablecoin, owned by Do Kwon, has filed for bankruptcy protection in the United States.
The company has submitted a request for Chapter 11 bankruptcy protection at the United States Bankruptcy Court for the District of Delaware, and has estimated between $100 and $500 million in liabilities and assets, as per a filing made on January 21.
In a separate statement, Chris Amani, CEO of Terraform Labs, stated that while facing adversity, the Terra community and ecosystem have shown great resilience.
He also mentioned that this action is necessary in order to continue working towards their goals while resolving any outstanding legal challenges.
He further expressed confidence in the ecosystem and looked forward to a successful resolution of the legal proceedings.
