Terraform Labs Files for Bankruptcy in Delaware

A filing submitted on January 21 shows that Terraform Labs Pte. has voluntarily declared Chapter 11 bankruptcy in Delaware.

The struggling cryptocurrency company, known for its failed stablecoin TerraUSD, has reported estimated assets and liabilities of $100 to $500 million.

The collapse of TerraUSD and its LUNA token in May 2022 resulted in the loss of billions of dollars for investors.

In a statement, Terraform Labs stated that the filing will allow them to continue operating and manage ongoing legal proceedings, including a class action lawsuit in Singapore and litigation in the United States.

Among the unsecured creditors listed are TQ Ventures, a digital assets investment fund in the US, and Standard Crypto, a venture fund based in San Francisco.