Terraform Labs has filed for bankruptcy, as reported in court documents in Delaware, USA. The digital currency startup, responsible for the Luna and UST catastrophe, submitted the bankruptcy petition on January 21st, citing debts ranging from $100 million to $500 million USD.
According to Reuters, the bankruptcy filing was confirmed by court records in Delaware. Bloomberg estimates the company’s debt at between $100 million and $500 million USD.
Chris Amani, CEO of Terraform Labs, told Cointelegraph, “The Terra community and ecosystem have demonstrated an unprecedented ability to recover in the face of adversity. Filing for bankruptcy is necessary to allow the company to continue working towards common goals while addressing lingering legal challenges.”
This move comes just four days after the U.S. Securities and Exchange Commission (SEC) approved a delay in the trial of Terraform Labs founder Do Kwon. This information also led to a slight decrease in the prices of the Luna and USTC (formerly UST) tokens.