Terra Classic

<ul><li>Terraform Labs, creators of TerraUSD and Luna, files for Chapter 11 bankruptcy in Delaware, addressing lawsuits with the SEC and legal issues in Singapore.</li><li>CEO Chris Amani emphasizes the significance of the bankruptcy filing for the company&#39;s ability to achieve its objectives.</li><li>The company seeks to bypass the need for a &#34;supersedeas bond&#34; to appeal against the SEC, arguing that its crypto assets are not securities.</li></ul>Terraform Labs, the firm behind the cryptocurrencies TerraUSD (UST) and Luna, has <a href="https://www.cnbc.com/2024/01/22/terraform-labs-files-for-bankruptcy-protection-in-the-us.html" rel="noopener noreferrer nofollow">filed</a> for Chapter 11 bankruptcy in Delaware. Chris Amani, the CEO, <a href="https://document.epiq11.com/document/getdocumentbycode?docId&#61;4287484&amp;projectCode&#61;TEF&amp;source&#61;DM" rel="noopener noreferrer nofollow">emphasized</a> the importance of the bankruptcy filing for the company&#39;s ability to achieve its objectives and navigate through these complex legal issues.Terraform’s move is a strategic response to ongoing legal issues, including a lawsuit with the U.S. <a href="https://cryptotale.org/u-s-sec-charges-terraform-labs-do-hyeong-kwon-for-crypto-fraud/" rel="noopener noreferrer nofollow">Securities and Exchange Commission</a> (SEC) and other legal challenges in Singapore. The bankruptcy documents reveal that Terraform Labs has assets and liabilities between $100 million and $500 million, and it has between 100 and 199 creditors.The bankruptcy filing also serves a tactical purpose in the company&#39;s legal strategy. Ordinarily, to appeal against the SEC, Terraform Labs would be required to secure a &#34;supersedeas bond&#34; amounting to 110% of the total judgment amount. However, the protections offered under <a href="https://cryptotale.org/bitcoin-miner-core-scientific-to-file-for-chapter-11-bankruptcy/" rel="noopener noreferrer nofollow">Chapter 11</a> might allow the company to proceed with the appeal without this requirement.In their appeal, Terraform Labs plans to argue that the SEC does not have the authority to charge the company or its co-founder, Do Kwon, claiming that their crypto assets should not be classified as securities and thus are outside the SEC’s jurisdiction. A successful appeal could significantly reduce the company&#39;s largest claim, benefiting Terraform Labs, its creditors, and the broader community.Read full article at <a href="https://cryptotale.org/terraform-ceo-argues-against-secs-authority-to-charge-do-kwon-and-his-company/" rel="noopener noreferrer nofollow">CryptoTale.</a>

Terraform CEO Argues Against SEC’s Authority To Charge Do Kwon and His Company

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