Terraform Labs yesterday obtained judicial approval to cease its operations in bankruptcy, following a settlement agreement reached with the US Securities and Exchange Commission (SEC).
The SEC had filed a lawsuit against the Singapore-based company, accusing them of defrauding cryptocurrency investors, including citizens of Singapore, who suffered an estimated loss of US$40 billion (S$51.7 billion) when their TerraUSD and Luna tokens collapsed in 2022.
During a hearing in Delaware, US bankruptcy judge Brendan Shannon gave his approval to Terraform’s bankruptcy plan and stated that it was a preferable option to avoid further legal battles over the investors’ losses.
Having filed for bankruptcy in January, Terraform had agreed to a US$4.47 billion settlement with the SEC after a jury in Manhattan found them liable for defrauding investors in April.
