Celsius

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Terra

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Terraform Labs, in a recent bankruptcy court filing, stated that its bankruptcy filing will allow it to proceed with a crucial appeal in a securities fraud case brought by the U.S. Securities and Exchange Commission (SEC). This comes after a federal judge's December ruling, which found Terraform Labs and its founder #DoKwon in violation of U.S. law for not registering two digital currencies, leading to market turbulence in the cryptocurrency space in 2022. 
While the case is set for trial in March to address the SEC's remaining fraud claims, #TerraformLabs expressed concerns in the court filing about its ability to cover the potential judgment and pursue an appeal. The company highlighted the uncertainty regarding the size of the monetary judgment but acknowledged that it might surpass the company's assets. Recently, the SEC also started supporting the&nbsp;<a href="https://www.coingabbar.com/en/crypto-currency-news/sec-supports-delaying-do-kwon-trial-post-extradition" title="Do Kwon" class="f-link" style="font-size: 16px; background-color: rgb(255, 255, 255);" rel="noopener noreferrer nofollow">Do Kwon</a> Trail Request following extradition to the US. 
Chris Amani, Terraform's head of company operations, mentioned in the court filing that the financial resources available to the company include approximately $28 million in Bitcoin, $7 million in various other cryptocurrencies, and around $87 million in its proprietary token, Luna.
<h3 style="" id="span-span-data-font-font-size-style-font-size-16px-terraform-labs-chapter-11-strategy-challenging-sec-s-jurisdiction-span-span">Terraform Labs' Chapter 11 Strategy Challenging SEC's Jurisdiction</h3>
In a strategic move outlined in its bankruptcy court filing, Terraform Labs plans to contest the U.S. Securities &amp; Exchange Commission's (SEC) jurisdiction over the company, asserting that its cryptocurrency tokens do not fall under the category of "securities."
Typically, initiating such an appeal would necessitate posting a bond equivalent to 110% of the total judgment value. However, #TerraformLabs argues that filing for <a href="https://www.coingabbar.com/en/crypto-currency-news/terraform-labs-action-after-sec-trial-delay-request" title="Chapter 11 bankruptcy" class="f-link" rel="noopener noreferrer nofollow">Chapter 11 bankruptcy</a> could potentially exempt the company from this requirement.
According to Terraform Labs, Chapter 11 protection offers a critical shield, allowing the company to pursue the appeal without the financial obligation of posting a bond. Chris Amani, Terraform's head of company operations, emphasized in the court filing that without the safeguards provided by Chapter 11, the company would likely face the prospect of liquidation post-trial.
<h4 style="">Terraform's Post-Collapse Focus on Developing Terra Blockchain and Applications</h4>
In the aftermath of its 2022 collapse, Terraform expresses its commitment to advancing tools and applications for the newly established Terra blockchain. Noteworthy developments include the creation of its crypto wallet, "Station," alongside the promotion of third-party application development for the Terra blockchain.
At the epicenter of the "crypto winter" in 2022, Terraform faced the challenges of collapsing asset prices, a period that led to the financial downfall of numerous crypto companies. The stability-focused TerraUSD, designed to maintain a constant $1 price, triggered significant market volatility as its value declined.
Both TerraUSD and its companion coin Luna eventually became worthless, contributing to the financial struggles and bankruptcies of prominent entities such as FTX, Three Arrows Capital, Celsius Network, BlockFi, Voyager Digital, and Genesis Global.
Also Read: <a href="https://www.coingabbar.com/en/crypto-currency-news/crypto-heist-story-with-cocaine-comedy-and-lessons" title="Bitcoin" class="f-link" style="" rel="noopener noreferrer nofollow">Crypto Heist Story with Cocaine, Comedy, and Bitcoin Lessons</a>

Terraform Labs Said That Bankruptcy Will Help Appeal SEC Lawsuit

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