Terraform Labs files for bankruptcy as Do Kwon awaits $40 billion fraud trial

COURT papers have been revealed that show Terraform Labs yesterday filed for Chapter 11 bankruptcy in the United States.

Terraform Labs underpinned the TerraUSD stablecoin which collapsed in May 2022 under the stewardship of its co-founder Do Kwon.

Kwon is currently awaiting trial in a case brought by the US Securities and Exchange Commission which accuses the 32-year-old South Korean of being behind a $40 billion cryptocurrency fraud.

The company, registered in Singapore, today said it would continue to meet financial obligations without a requirement for intervention after listing liabilities and assets between $100 million and $500 million.

A statement read: "The filing will allow TFL to execute on its business plan while navigating ongoing legal proceedings, including representative litigation pending in Singapore and US litigation involving the Securities and Exchange Commission (SEC)."

‍