{"id":29589,"date":"2024-09-21T15:00:42","date_gmt":"2024-09-21T12:00:42","guid":{"rendered":"https:\/\/coinengineer.net\/blog\/?p=29589"},"modified":"2024-09-21T10:06:31","modified_gmt":"2024-09-21T07:06:31","slug":"terraform-labs-closes-operations-amid-bankruptcy","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/terraform-labs-closes-operations-amid-bankruptcy\/","title":{"rendered":"Terraform Labs Closes Operations Amid Bankruptcy"},"content":{"rendered":"<p>Reporting from <a href=\"https:\/\/www.reuters.com\/technology\/terraform-labs-approved-bankruptcy-wind-down-after-us-sec-settlement-2024-09-19\/\">Reuters<\/a> indicates that another chapter closed for <strong>Terraform Labs<\/strong> following the company&#8217;s bankruptcy court clearance of closure of operations.<\/p>\n<p>According to <strong>Terraform<\/strong>, the company behind the well-known algorithmic stablecoin Terra, bankruptcy will pay around $184.5 million and $442.2 million to stakeholders.<\/p>\n<p>The company&#8217;s case was taken before the U.S. Securities and Exchange Commission; its wind-down follows <strong>Terraform<\/strong> closing another chapter.<\/p>\n<p>Over the algorithmic stablecoin Terra USD (UST), which failed a year earlier, the SEC prosecuted <strong>Terraform and co-founder Do Kwon<\/strong> in February 2023. The government claimed the company misled and stole from investors. Both sides were haggling over minute details before the conclusion. While the SEC has requested they pay $5.3 billion, lawyers for <strong>Terraform and Kwon<\/strong> claimed fines should be closer to $1 million.<\/p>\n<p><strong>Terraform Labs<\/strong> agreed to pay fines to the U.S. District Court for the Southern District of New York totaling $4.7 billion in June. <strong>Terraform<\/strong> promised to pay $3.58 billion in disgorgement, $420 million in a civil penalty, and would prevent Kwon from serving as an officer or director of any public company as part of the deal.<\/p>\n<p>As part of the bankruptcy process, the SEC stated it would obtain its claim once creditors were paid.<\/p>\n<p><em>&#8220;Under the liquidation terms of the Chapter 11 Plan that <strong>Terraform<\/strong> is required to propose, the SEC will recover on its claim after harmed investors and other general unsecured creditors recover in full. If all <strong>Terraform\u2019s<\/strong> assets are distributed pursuant to such a plan, the SEC\u2019s monetary remedies will be deemed satisfied,<\/em>&#8221; the agency stated in June&#8217;s settlement papers.<\/p>\n<p>&nbsp;<\/p>\n<p><em class=\"darkmysite_style_txt_border darkmysite_processed\" data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\">You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don\u2019t forget to follow us on our\u00a0<a class=\"darkmysite_style_txt_border darkmysite_style_link darkmysite_processed\" href=\"https:\/\/t.me\/coinengineernews\" target=\"_blank\" rel=\"noreferrer noopener nofollow\" data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\"><strong class=\"darkmysite_style_txt_border darkmysite_processed\" data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\">Telegram,\u00a0<\/strong><\/a><a class=\"darkmysite_style_txt_border darkmysite_style_link darkmysite_processed\" href=\"https:\/\/www.youtube.com\/@CoinEngineer\" target=\"_blank\" rel=\"noreferrer noopener nofollow\" data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\"><strong class=\"darkmysite_style_txt_border darkmysite_processed\" data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\">YouTube<\/strong><\/a>,\u00a0and\u00a0<a class=\"darkmysite_style_txt_border darkmysite_style_link darkmysite_processed\" href=\"https:\/\/twitter.com\/coinengineers\" target=\"_blank\" rel=\"nofollow noopener\" data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\"><strong class=\"darkmysite_style_txt_border darkmysite_processed\" data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\">Twitter<\/strong><\/a>\u00a0channels for\u00a0<\/em><em class=\"darkmysite_style_txt_border darkmysite_processed\" data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\">the latest\u00a0<a class=\"darkmysite_style_txt_border darkmysite_style_link darkmysite_processed\" title=\"News\" href=\"https:\/\/coinengineer.net\/blog\/news\/\" data-internallinksmanager029f6b8e52c=\"7\" data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\">news<\/a>\u00a0and updates.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Reporting from Reuters indicates that another chapter closed for Terraform Labs following the company&#8217;s bankruptcy court clearance of closure of operations. According to Terraform, the company behind the well-known algorithmic stablecoin Terra, bankruptcy will pay around $184.5 million and $442.2 million to stakeholders. The company&#8217;s case was taken before the U.S. Securities and Exchange Commission;<\/p>\n","protected":false},"author":6,"featured_media":29590,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[1675,3647,2868],"class_list":["post-29589","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-do-kwon","tag-terraform","tag-terraform-labs"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Terraform Labs Closes Operations Amid Bankruptcy - Coin Engineer<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coinengineer.net\/blog\/terraform-labs-closes-operations-amid-bankruptcy\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Terraform Labs Closes Operations Amid Bankruptcy - Coin Engineer\" \/>\n<meta property=\"og:description\" content=\"Reporting from Reuters indicates that another chapter closed for Terraform Labs following the company&#8217;s bankruptcy court clearance of closure of operations. 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