Terraform Labs (TFL), the company that owns cryptocurrency TerraUSD, has filed for bankruptcy protection in a US court. In documents submitted to the court, the Singapore-based company listed its assets as between 10 and 50 million dollars.
According to documents filed with a Delaware court, the company, which has been in the grip of the crypto market crash since 2022, has sought ‘Chapter 11 bankruptcy protection’ in the US.
Earlier, company founder Sam Bankman-Fried stepped down as CEO of crypto exchange FTX, similarly seeking ‘Chapter 11 bankruptcy protection’. Later, he was arrested in the Bahamas and brought back to the United States.
Terraform Labs will satisfy all financial claims of employees and suppliers during the course of the Chapter 11 case without additional financing. Apart from this, the company is also planning to continue the ‘Web3’ service for blockchain users.
