Overview

• Terraform Labs, the company behind the failed TerraUSD stablecoin, has filed for Chapter 11 bankruptcy, listing assets and liabilities between $100 million and $500 million.
• The company’s co-founder, Do Kwon, is facing extradition to the US following the fall of TerraUSD and its sister token Luna, which vaporized billions of dollars in 2022.
• Terraform Labs faces a civil securities fraud lawsuit from the SEC, linked to the 2022 collapse of its algorithmic stablecoin UST and governance token LUNA.
• Do Kwon is currently serving a four-month sentence in Montenegro for using forged passports in an attempt to leave the country in March.
• A federal judge last week agreed to postpone Do Kwon's SEC trial, after he requested that it be pushed back to enable him to attend, pending his extradition from Montenegro.