Terraform is Bankrupt
What is Terraform Labs about?
Terraform Labs which is founded by the infamous Do Kwon is the company behind the TerraUSD (UST) stablecoin.
What happened to Do Kwon?
After the collapse of the Terra ecosystem in May 2022, civil charges were filed against Do Kwon by the U.S. SEC in February 2023, leading to Kwon’s subsequent arrest in Montenegro in March 2023.
What is happening to Terraform Labs?
On 21 January 2024, Terraform Labs filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware.
Why are they doing this?
The CEO, Chris Amani, stated that the action is necessary given the company’s estimated liabilities which go up to USD500 million.
The Do Kwon saga continues.