Breaking: Chapter 11 or Exit Scam? The Murky Future of TerraUSD and Luna After Bankruptcy

• Terraform Labs files for Chapter 11 bankruptcy protection with the US Court.
• The platform’s assets and liabilities range from $100 million to $500 million, as per the filing.
• The filing stated that the company would take care of the ongoing legal proceedings and the financial obligations.

Terraform Labs, the once-prominent crypto exchange whose collapse in 2022 triggered the protracted crypto winter, has recently filed for Chapter 11 bankruptcy in the US court. According to a filing dated January 21, both the assets and liabilities of the company ranged from $100 million to $500 million.

In May 2022, Terraform Labs saw a major crash with the fall of its key tokens, TerraUSD and Luna. Wiping out more than $40 billion in market cap, the fall of Terraform Labs led to the downfall of a wider crypto market.

According to the bankruptcy filing, Terraform Labs has agreed to settle the company’s financial obligations to its employees during the bankruptcy case without additional finance. Terraform Labs also plans to continue with its Web3 offerings’ expansion.

In addition, the company will also…

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