Terraform Labs Secures Court Approval for Bankruptcy Wind-Down After $4.47 Billion SEC Settlement: Reuters

Sep 19, 2024, 07:29 PM

Terraform Labs has received court approval to wind down its operations in bankruptcy following a settlement with the U.S. Securities and Exchange Commission (SEC). The settlement, valued at $4.47 billion, resolves accusations that the company defrauded cryptocurrency investors who lost approximately $40 billion when the TerraUSD and Luna tokens collapsed in 2022. The bankruptcy process, which was filed in January 2024, aims to return between $184.5 million and $1.2 billion to creditors. The approval was reported by Reuters and included a judge signoff.