Welcome DT News

  • CONTACT
  • ABOUT US
Deythere
  • Home
  • News
    image 854
    NewsCryptoMarketSponsored Article

    Shiba Inu’s Jackpot Already Hit? MoonBull Whitelist Opens the Hatch to the Next Big Meme Coins Gold Rush

    Have recent shifts in the crypto market left investors wondering if the…

    By
    Benedikt Krüger
    August 28, 2025
    China’s Linklogis Partners With XRP Ledger to Digitize Global Supply Chain Finance
    NewsCryptoMarket
    China’s Linklogis Partners With XRP Ledger to Digitize Global Supply Chain Finance
    August 28, 2025
    MANTRA Launches $25M OM Token Buyback After Crash, Will It Spark a Recovery?
    NewsCryptoMarket
    MANTRA Launches $25M OM Token Buyback After Crash, Will It Spark a Recovery?
    August 28, 2025
    image 848
    CryptoMarketNewsSponsored Article
    Traders Whisper About a 1000x Crypto Breakout as MoonBull Whitelist Booms, While Neiro and SPX6900 Stay Strong
    August 28, 2025
    blockchain budget proposal
    NewsBlockchainCryptoMarket
    Blockchain in Governance: Philippines Eyes On-Chain National Budget
    August 28, 2025
  • Cryptocurrency
    image 854
    Shiba Inu’s Jackpot Already Hit? MoonBull Whitelist Opens the Hatch to the Next Big Meme Coins Gold Rush
    7 Min Read
    China’s Linklogis Partners With XRP Ledger to Digitize Global Supply Chain Finance
    China’s Linklogis Partners With XRP Ledger to Digitize Global Supply Chain Finance
    6 Min Read
    MANTRA Launches $25M OM Token Buyback After Crash, Will It Spark a Recovery?
    MANTRA Launches $25M OM Token Buyback After Crash, Will It Spark a Recovery?
    7 Min Read
    image 848
    Traders Whisper About a 1000x Crypto Breakout as MoonBull Whitelist Booms, While Neiro and SPX6900 Stay Strong
    10 Min Read
    blockchain budget proposal
    Blockchain in Governance: Philippines Eyes On-Chain National Budget
    6 Min Read
    Altcoins Oversold More Than Ever
    Altcoins Oversold More Than Ever: Extreme Fear or Hidden Opportunity?
    6 Min Read
    Previous Next
  • Pages
    • Contact Us
    • Customize Interests
    • My Bookmarks
Reading: Terraform Labs to Cease Operations After Bankruptcy, Offers Payments for Terra Stablecoin Collapse
Share

[ccpw id=”7831″]

DeythereDeythere
Font ResizerAa
  • Home
  • Crypto
  • Market
  • News
  • Blockchain
  • Contact
Search
  • Home
  • News
  • Cryptocurrency
  • Pages
    • Contact Us
    • Customize Interests
    • My Bookmarks
Have an existing account? Sign In
Follow US
© DT News. All Rights Reserved.
Deythere > News > News > Terraform Labs to Cease Operations After Bankruptcy, Offers Payments for Terra Stablecoin Collapse
News

Terraform Labs to Cease Operations After Bankruptcy, Offers Payments for Terra Stablecoin Collapse

depicting the bankruptcy and shutdown of Terraform Labs after the Terra stablecoin collapse. Include the logos of Terraform Labs and Ter
Thalia Galanis
Last updated: September 20, 2024 9:10 am
By
Thalia Galanis
Published September 20, 2024
3 Min Read
Share

Terraform Labs, the developer behind the algorithmic stablecoin Terra, has announced its decision to cease operations following its bankruptcy court proceedings. The company plans to offer payments between $184.5 million and $442.2 million to its creditors as part of its settlement.

Contents
Terraform Labs Halts Operations Post-BankruptcySEC Clarifies Position on Remaining ClaimsAftermath of the Terra USD CollapseSettlement and Penalties: A Lengthy Legal Battle

Terraform Labs Halts Operations Post-Bankruptcy

In a significant development, Terraform Labs, the company behind the notorious Terra stablecoin, has declared that it will cease its operations. This decision follows the bankruptcy process in which a detailed plan was laid out to compensate the company’s creditors. Terraform Labs aims to settle its liabilities by offering payments ranging from $184.5 million to $442.2 million.

SEC Clarifies Position on Remaining Claims

The SEC has clarified its position, stating that its claims against Terraform Labs will be addressed after payments to unsecured creditors and investors are completed. The SEC commented, “Under Terraform’s Chapter 11 Plan, all affected investors and unsecured creditors will be fully compensated before the SEC’s claims are addressed.” This statement emphasizes the priority given to affected individuals before regulatory demands are handled.

representing the bankruptcy and closure of Terraform Labs following the Terra stablecoin collapse. Show the Terraform Labs logo alongsid

Aftermath of the Terra USD Collapse

The collapse of Terra USD (UST), the stablecoin developed by Terraform Labs, led to significant scrutiny and a high-profile lawsuit initiated by the SEC in February 2023. The regulatory body accused Terraform Labs and its founder, Do Kwon, of defrauding investors during UST’s collapse. The legal battle centered around the financial penalties to be imposed.

Settlement and Penalties: A Lengthy Legal Battle

Throughout the court proceedings, Terraform Labs and the SEC were at odds over the amount of penalties. While Terraform argued for a $1 million fine, the SEC demanded $5.3 billion in penalties. The matter was resolved in June when Terraform Labs agreed to a massive $4.7 billion settlement. This settlement requires the company to return $3.58 billion and pay an additional $420 million in fines. The size of the settlement highlights the severity of the collapse and its far-reaching impact on crypto markets and investors.

The conclusion of Terraform Labs’ bankruptcy marks a pivotal moment in the history of the Terra USD collapse. The settlement plan not only aims to provide substantial compensation to those affected but also ensures regulatory compliance as dictated by the SEC. As Terraform Labs winds down its operations, this chapter serves as a stark reminder of the risks in the growing crypto market, emphasizing the need for caution as the market continues to evolve.

Terraform Labs bankruptcy, Terra USD collapse, SEC lawsuit, Do Kwon, creditor payments

Advertising

For advertising inquiries, please email . [email protected] or Telegram

Speculation Grows: Possible Gathering of Cardano’s Founder and Elon Musk at Wyoming Ranch

Ethereum’s ENS Set for Major Upgrade with New Layer-2 Network

Federal Reserve’s $395 Billion Liquidity Surge: Will Crypto Markets Boom or Bust?

Binance Announces Hamster Kombat on Launchpool: Here Are the Details

Fill Your Wallets Before It Moons: MoonBull Is Gearing Up to Be the 1000x Crypto – Brett and Notcoin Stay Bullish

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Share This Article
Facebook Email Copy Link Print
Previous Article showing Bitcoin approaching the 64000 resistance level with volatility. The Bitcoin logo should be prominent with a stock market char Bitcoin Faces New Challenges as It Approaches $64,000 Resistance Level
Next Article representing the rise of a cryptocurrency with vibrant digital elements like upward trending lines coin symbols and abstrac Super Trump Coin: Donald Trump’s Crypto Surge Sees 7% Growth Amid Election Excitement
Leave a Comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Follow US

Find US on Socials
FacebookLike
XFollow
YoutubeSubscribe
TelegramFollow
Subscribe to our newslettern

Get Newest Articles Instantly!

- Advertisement -
Ad image
Popular News
crypto 2024
Crypto Derivatives Market Heats Up as Innovative Products Emerge
crypto approval
Blockchain Revolutionizes Energy Markets with Decentralized Trading Platforms
crypto news
Cutting-Edge Mining Technologies Drive Efficiency in Cryptocurrency Production

Follow Us on Socials

We use social media to react to breaking news, update supporters and share information

Twitter Youtube Telegram Linkedin
Deythere

DT News influence 20 million users and is the number one business blockchain and crypto news network on the planet.

Subscribe to our newsletter

You can be the first to find out the latest news and tips about trading, markets...

Menu

  • Home
  • News
  • Sitemap
© DT News. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?

  • English