Terraform Labs has received approval from a U.S. bankruptcy judge to begin liquidation
Terraform Labs has received approval from a U.S. bankruptcy judge to begin liquidation. Terraform estimates that as part of the bankruptcy, it will pay stakeholders approximately $184.5 million and $442.2 million. In February 2023, the SEC brought charges against Terraform and its co-founder Do Kwon over the algorithmic stablecoin Terra USD (UST), which collapsed a year earlier. The agency claimed that the company deceived and misled investors. Before reaching a settlement, both sides argued endlessly about the amount of the fine. Lawyers for Terraform and Kwon stated that the fine should be close to $1 million, while the SEC proposed they pay $5.3 billion.
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