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<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/the-strategic-bankruptcy-filing-of-terraform-labs-amidst-legal-battles-with-the-sec" rel="noopener noreferrer nofollow">The Strategic Bankruptcy Filing of Terraform Labs Amidst Legal Battles with the SEC</a><br></p>
<p style="text-align: justify">Terraform Labs has filed for Chapter 11 bankruptcy, a strategic move by CEO Chris Amani to facilitate the appeal process against the U.S. Securities and Exchange Commission (SEC). The firm’s bankruptcy filing in Delaware on January 21 aims to contest the SEC’s authority without the need to post a supersedeas bond, which would typically be 110% of the judgment value.</p>
<h2 id="challenging-sec-s-jurisdiction">Challenging SEC’s Jurisdiction</h2>
<p style="text-align: justify">During the appeal, Terraform Labs will argue that the SEC lacks jurisdiction over the company and its assets, which they claim are not securities. Amani believes that a successful appeal could benefit the company, its creditors, and the broader community by eliminating the largest claim against Terraform Labs.</p>
<p style="text-align: justify">Amani has disclosed that Terraform Labs’ treasury holds significant assets, including $28 million in <a href="https://en.bitcoinhaber.net/insights-into-bitcoins-surge-and-etf-dynamics-analyzing-market-trends-and-projections" rel="noopener noreferrer nofollow">Bitcoin</a>, $7 million in various cryptocurrencies, and approximately $87 million in Luna tokens.</p>
<p style="text-align: justify">Following the bankruptcy announcement, the SEC proceeded with a lawsuit against Terraform Labs and its founder Do Kwon in February 2023. The lawsuit alleges a multi-billion dollar securities fraud involving crypto assets previously known as UST and LUNA. This legal action comes after a delay in Kwon’s fraud trial to March 25, requested by his legal team.</p>
<p style="text-align: justify">The collapse of Kwon’s Terra Luna ecosystem in May 2022 led to his arrest in Montenegro in March 2023, with both the United States and South Korea seeking his extradition. Kwon faces potential penalties in both countries, including a lengthy prison sentence in South Korea for his alleged crimes.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/the-strategic-bankruptcy-filing-of-terraform-labs-amidst-legal-battles-with-the-sec" rel="noopener noreferrer nofollow">The Strategic Bankruptcy Filing of Terraform Labs Amidst Legal Battles with the SEC</a></h5>

The Strategic Bankruptcy Filing of Terraform Labs Amidst Legal Battles with the SEC

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