when

Terra

Coin

<ul class="news-points wp-block-list">
 <li>U.S. Bankruptcy Judge approves Terraform Labs’ wind-down plan.</li>
 <li>Terraform lost an estimated $40 billion after TerraUSD and Luna crashed in 2022.</li>
 <li>Do Kwon faces SEC settlements and criminal charges in the U.S. and South Korea.</li>
</ul>
Terraform Labs, the company behind the failed TerraUSD and Luna tokens, is preparing to wind down after a U.S. court greenlit its <a href="https://www.reuters.com/technology/terraform-labs-approved-bankruptcy-wind-down-after-us-sec-settlement-2024-09-19/" target="_blank" rel="noopener noreferrer nofollow">bankruptcy plan</a>. This decision closes a chapter on its dramatic $40 billion collapse.
During a hearing in Wilmington, Delaware, U.S. Bankruptcy Judge Brendan Shannon described the plan as a “welcome alternative” to minimize investor losses rather than engage in lengthy legal battles. The crypto firm suffered an estimated $40 billion loss in 2022 when its TerraUSD and Luna tokens crashed, leaving investors and the cryptocurrency world in shock.
From Prominence to Collapse
The blockchain firm, founded by Do Kwon and Daniel Shin, was once known for its Terra blockchain protocol and algorithmic stablecoin payment platform. However, the company’s fortunes changed drastically in May 2022 when TerraUSD, a stablecoin meant to maintain a constant $1 price, collapsed. This led to the loss of nearly $45 billion in ma…
The post <a href="https://coinedition.com/terraform-labs-behind-terrausd-collapse-gets-bankruptcy-approval/" rel="noopener noreferrer nofollow">Terraform Labs, Behind TerraUSD Collapse, Gets Bankruptcy Approval</a> appeared first on <a href="https://coinedition.com" rel="noopener noreferrer nofollow">Coin Edition</a>.

Terraform Labs, Behind TerraUSD Collapse, Gets Bankruptcy Approval

Coin Edition

Other articles published on Sep 20, 2024

Crypto AI:CON Gathers the Brightest AI and Blockchain Minds in Lisbon

Terraform Labs Bankruptcy Plan Approved by Court

Coinpedia Fintech News

Sun Token Price Prediction: SUN Pumps 6% As This Meme Coin Casino Roars Past $250k Raised

Chainlink Struggles To Breach $12.38, LINK Faces Challenges in Recovery

Is It Too Late To Buy FIDA? Solana Name Service Price Skyrockets 53% After Binance Futures Launch...

Join our free newsletter for daily crypto updates!