Singapore-based Terraform Labs, the company behind digital assets TerraUSD and Luna, filed for Chapter 11 bankruptcy in Delaware following the collapse of its cryptocurrencies in 2022.
Terraform Labs, which confirmed its Chapter 11 bankruptcy protection filing, says the filing is a strategic step that will enable it to continue its operations and support litigation pending in Singapore and U.S. litigation involving the Securities and Exchange Commission.
The outfit also says it would meet all financial obligations to employees and vendors during the Chapter 11 case without requiring additional financing.
Terraform Labs’ estimated assets and liabilities range from $100 million to $500 million, while the number of creditors is between 100 and 199.
Terraform Labs plans to continue expanding its Web3 business and recently acquired Pulsar Finance, a cross-chain portfolio manager and data provider, and launched Station v3, a cryptocurrency wallet, earlier this month.