Terraform Labs Gets Court Approval for Bankruptcy Wind-Down After $4.47 Billion SEC Settlement

Sep 19, 2024, 08:04 PM

Terraform Labs has received court approval to wind down its operations following a $4.47 billion settlement with the U.S. Securities and Exchange Commission (SEC). The settlement resolves allegations that the company defrauded cryptocurrency investors, leading to an estimated $40 billion loss when the TerraUSD and Luna tokens collapsed in 2022. The bankruptcy process, initiated in January 2024, aims to potentially return between $184.5 million to investors. Judge Brendan Linehan Shannon ruled on Case No. 24–10070 on September 19, 2024.