Terraform Labs, the company behind the creation of the Terra ecosystem consisting of its cryptocurrency LUNA and stablecoin UST, has recently filed for Chapter 11 bankruptcy protection in the state of Delaware. This filing comes after a series of legal and financial complications that the company has faced following the tragic collapse of its entire ecosystem.
The bankruptcy filing states that the assets and liabilities of Terraform Labs are estimated between $100 and $500 million each. An impressive range reflecting the uncertainties and challenges that the company is facing in the volatile cryptocurrency market.
The announcement of the bankruptcy filing coincides with the legal developments surrounding Do Kwon, the co-founder of Terraform Labs. Do Kwon, who is facing charges from the U.S. SEC, may be extradited to the United States by mid-March.
