Terraform Labs, the company responsible for the stablecoin TerraUSD, has made headlines in 2022 due to its collapse and the subsequent impact on cryptocurrency markets. According to court documents filed on Sunday, the company has officially filed for Chapter 11 bankruptcy in the United States.
In the bankruptcy filing submitted to the court in Delaware, Terraform Labs, which is based in Singapore, disclosed assets and liabilities estimated to be in the range of $100 to $500 million.
Despite this financial setback, Terraform Labs has assured that it will fulfill all its financial obligations to employees and vendors throughout the Chapter 11 proceedings without requiring additional financing. Furthermore, the company expressed its commitment to expanding its Web3 offerings.
The bankruptcy filing is seen as a strategic move by Terraform Labs, allowing the company to continue pursuing its business plan while addressing ongoing legal issues. This includes litigation both in Singapore and the United States involving the Securities and Exchange Commission (SEC), in which Terraform Labs is involved.
Terraform Labs issued a statement emphasizing that the bankruptcy filing will enable them to navigate these legal matters while still advancing their operations.
Source (CNBC)
