Terra

Billion

<figure>
 <figcaption>
 Cover image via <a href="https://u.today/" rel="noopener noreferrer nofollow">U.Today</a>
 </figcaption>
</figure>
In the latest development in the <a href="https://x.com/crypto/status/1800947017847349425" rel="noopener noreferrer nofollow">Terra lawsuit</a>, the SEC has requested that a U.S. federal judge approve a $4.47 billion settlement to resolve the lawsuit over the firm's 2022 collapse, which wiped out $40 billion in investor assets.
<a href="https://u.today/terraform-labs-says-it-will-not-give-out-do-kwons-location" rel="noopener noreferrer nofollow">Terraform Labs</a> will pay roughly $3.59 billion plus interest and a $420 million penalty, while Terra cofounder Do Kwon must transfer at least $204.3 million to the Terraform bankruptcy estate for distribution to investors, including $110 million in disgorgement, interest and an $80 million penalty, according to a court filing.
The resolution also requires Terraform to wind down its business and seek approval of a Chapter 11 liquidation plan in its bankruptcy case that replaces company directors, including current CEO Chris Amani, and appoints a trustee to use the company's remaining assets to pay creditors and investors.
The agreement was reached after a jury found Terraform Labs and cofounder Do Kwon responsible for fraud during a two-week civil trial in April.
<h2 id="what-s-next">What's next?</h2>
With the proposed settlement now public, Terraform Labs CEO <a href="https://x.com/fleece_cannon/status/1800962168659247432" rel="noopener noreferrer nofollow">Chris Amani</a> takes to X to discuss what comes next for Terraform Labs (TFL). According to Amani, TFL had always planned to dissolve at some point, and the time has finally come. Following the court's request, TFL will be winding down operations completely. &nbsp;
<blockquote>
 2/ TFL always intended to dissolve at some point and that point is now. We will be winding down operations completely. Special thanks to the lunatics who supported us through this process and thanks to the TFL team. I’m incredibly proud that we were able to hold this company…— Chris Amani | Terra (@fleece_cannon) <a href="https://twitter.com/fleece_cannon/status/1800962168659247432?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">June 12, 2024</a>
</blockquote>
In line with this, the Terraform Labs CEO stated that a community proposal will be shortly posted to burn all of TFL's unvested Luna. He further added that anything that remains vested in associated wallets will be burned by TFL.
Moving forward, the community will have to assume responsibility for the chain. &nbsp;Amani added that there are a few teams and developers who are willing to undertake this; additional information will be available in the coming days on associated forums.
Meanwhile, Terraform Labs products Pulsar finance, station wallet and enterprise protocol will continue to operate while TFL is winding down and preparing to sell.
Amani said a lot more is planned over the coming weeks and will be disclosed once approved by the courts.

Terra (LUNA)'s Path After $4.47 Billion SEC Fine; What's Next?

Table of Contents

U_Today

Other articles published on Jun 13, 2024

Circle Launches 2-Phase Solana Integration With Major New Features

Toncoin over Ethereum? Why TON could be your best bet in June

XRP Continues To Struggle Below $0.5, Ex-Ripple Director Reveals Why Price Action Remains Muted

Pepe Surges 17.85% with Strong Bullish Indicators Pointing to a Potential 50% Rally by June’s End

DADDY Token Surges 450% After Andrew Tate’s Endorsement

Dormant Ethereum Whale Reactivates as Ethereum Spot ETF Approval Triggers Rally, ERC-20 Presale M...

Join our free newsletter for daily crypto updates!