Terraform Labs Files for Chapter 11 Bankruptcy Protection
In a separate statement, Terraform Labs Chris Amani indicated that the recent action will enable the company to continue working towards resolving its legal challenges.
Following the Terraform Labs’ Chapter 11 bankruptcy protection in the United States, all the gains made by the respective tokens – including TerraClassicUSD (USTC), Terra LUNA, and Terra Luna Classic – had been obliterated. With the bankruptcy case likely to drag the existing case filed by the US much longer, more losses could be expected in the coming months as more investors liquidate their positions for crypto projects with better fundamentals. In November last year, Terraforms Labs injected $15 million into Terra LUNA to improve liquidity.