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 <p class="is-style-lead">Singapore-based Terraform Labs says its recent <a rel="dofollow" title="bankruptcy" href="https://thebittimes.com/tag/bankruptcy.html">bankruptcy</a> filing will help it pursue a “do-or-die” <a rel="dofollow" title="appeal" href="https://thebittimes.com/tag/appeal.html">appeal</a> against the U.S. Securities and Exchange Commission (SEC).</p> 
 <p>According to a Reuters report, Terraform Labs, the developer behind the Terra blockchain ecosystem, filed for <a rel="dofollow" title="bankruptcy" href="https://thebittimes.com/tag/bankruptcy.html">bankruptcy</a> earlier in January due to potential financial constraints in dealing with an unresolved judgment and pursuing an <a rel="dofollow" title="appeal" href="https://thebittimes.com/tag/appeal.html">appeal</a> with the SEC.</p> 
 <p>In December 2023, a U.S. court ruled that Terraform Labs and its founder, Do Kwon, violated U.S. law by failing to register two cryptocurrencies: LUNA and MIR, which the SEC deemed as securities. The court’s judgment could potentially exceed the debtor’s assets, according to Terraform Labs’ Head of Company Operations, Chris Amani.</p> 
 <blockquote class="wp-block-quote"> 
  <p>“The exact size of a money judgment remains unknown, but it could very well outstrip the debtor’s assets.”</p> 
  <p>Chris Amani</p> 
 </blockquote> 
 <div class="cn-block-related-link"> 
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"> <use xlink:href="#"></use> 
  </svg> <span class="cn-block-related-link__prefix"> You might also like: </span> Terra Classic delisting confirmed by Crypto.com following bankruptcy filings 
 </div> 
 <p>The firm has around $28 million worth of Bitcoin (BTC), $7 million in various altcoins, and approximately $87 million in its token, Luna. To proceed with an appeal, Terraform Labs must post a bond of 110% of the total judgment value, the report notes.</p> 
 <p>The company is currently facing fraud claims, with the trial postponed to mid-April. Kwon’s lawyers have sought approval to delay Terra’s trial until Mar. 18, citing his attendance as a former crypto tycoon. If the new date is not met, Kwon will not file for a second extension.</p> 
 <p>Earlier in January, Terraform Labs filed for Chapter 11 <a rel="dofollow" title="bankruptcy" href="https://thebittimes.com/tag/bankruptcy.html">bankruptcy</a> protection, seeking a way to continue executing its business plan while navigating ongoing legal proceedings, including “representative litigation pending in Singapore and U.S. litigation” involving the SEC.</p> 
 <div class="cn-block-related-link"> 
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"> <use xlink:href="#"></use> 
  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> Do Kwon’s Serbian enterprise outlasts Terraform Lab’s collapse 
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<p>Source: <a rel="dofollow" target="_blank" href="https://thebittimes.com/terraform-labs-seeks-do-or-die-appeal-via-bankruptcy-to-fight-sec-tbt78328.html">https://thebittimes.com/terraform-labs-seeks-do-or-die-appeal-via-bankruptcy-to-fight-sec-tbt78328.html</a></p>

Terraform Labs seeks ‘do-or-die’ appeal via bankruptcy to fight SEC

TheBitTimes

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