The company that created the TerraUSD (UST) stablecoin, Terraform Labs (TFL), has unexpectedly filed for Chapter 11 bankruptcy protection in Delaware, USA. This action follows a <a href="https://coingape.com/terraform-labs-tfl-files-for-bankruptcy-protection-luna-lunc-price-fell-5/?utm_source&#61;24hrsupdateall" rel="noopener noreferrer nofollow">bankruptcy proposal submitted in the Terraform Labs</a> v. U.S. SEC case, further complicating the already difficult path taken by this Singapore-based business.The Bankruptcy FilingAccording to court filings made on Sunday, Do Kwon’s co-founded business, Terraform Labs, filed for Chapter 11 bankruptcy. The estimated assets and liabilities range from about $100 million to $500 million, per the court records. Do Kwon, the largest stakeholder at Terraform Labs, has an incredible 92% of the business, with between 100 and 199 creditors. The remaining shares of this Singaporean organization are owned by businessman Daniel Shin from South Korea.What Led to the Bankruptcy Decision?The petition states that the primary basis for filing for bankruptcy protection is the ongoing legal obstacles, particularly in the Terraform Labs v. U.S. SEC case. Currently, Do Kwon, the co-founder, and Terraform Labs is facing fraud charges. They are charged with violating securities laws and selling unregistered stocks. The legal case reached a significant turning point when Judge Jed S. Rakoff’s December ruling in favor of the U.S. SEC confirmed that Terraform Labs and Do Kwon did offer unregistered securities. However, the Judge dismissed allegations about transactions involving unregistered security-based swaps, meaning that the SEC’s fraud case against Terraform will be decided by a jury.The CEO’s Perspective: Navigating ChallengesIn response to the bankruptcy filing, Terraform Labs CEO Chris Amani emphasized the importance of the choice for the company and its investors. Amani stated that Terraform Labs needed to make this decision to continue working toward its goals and to resolve the outstanding legal matters. “The Terra community and ecosystem have shown unprecedented resilience in the face of adversity, and this action is necessary to allow us to continue working toward our collective goals while resolving the legal challenges that remain outstanding,” said Chris Amani.Market Impact: LUNA &amp; LUNC Prices SlipThe news of Terraform Labs’ bankruptcy filing hit the cryptocurrency market hard; on the last day, the price of LUNA and LUNC fell by 7%. In 24 hours, Terra (LUNA) has seen a high of $0.611 and a low of $0.666. Right now, it’s selling for $0.61. But LUNC’s price is fixed at $0.000102, with a $0.000112 24-hour high and a $0.000102 24-hour low. Additionally, there has been a 1% decrease in trading volume during the past day.Readb More : <a href="https://nftstudio24.com/terraform-labs-faces-bankruptcy-luna-lunc-prices-drop/" rel="noopener noreferrer nofollow">https://nftstudio24.com/terraform-labs-faces-bankruptcy-luna-lunc-prices-drop/</a>

Terraform Labs Faces Bankruptcy: LUNA & LUNC Prices Drop

NFTStudio24

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