Crypto firm Terraform Labs files for Chapter 11 bankruptcy protection
ABC News
Terraform Labs has filed for Chapter 11 bankruptcy protection, less than two years after a collapse of the company’s cryptocurrency devastated traders around the world
NEW YORK -- Terraform Labs has filed for Chapter 11 bankruptcy protection, less than two years after a collapse of the company’s cryptocurrency devastated investors around the world.
The Singapore crypto firm filed for protection in U.S. bankruptcy court in Delaware on Sunday, according to court documents. Terraform listed both its estimated assets and liabilities in the $100 million to $500 million range.
Terraform said that the bankruptcy filing will allow the company to “execute on its business plan while navigating ongoing legal proceedings,” which includes litigation in Singapore as well as the U.S.
Terraform added that it intends to fulfill all financial obligations to employees and vendors during this bankruptcy case, and does not require additional financing. The company also plans to continue the expansion of its Web3 offerings.
“We have overcome significant challenges before and, against long odds, the ecosystem survived and even grew in new ways post-depeg; we look forward to the successful resolution of the outstanding legal proceedings,” Chris Amani, Terraform Labs CEO, said in a prepared statement.
