Crypto Firm Terraform Labs Files for Bankruptcy

Crypto Firm Terraform Labs , Files for Bankruptcy.

Terraform Labs was previously responsible for a $40 billion crypto market loss when its TerraUSD and Luna stablecoins collapsed, Engadget reports.

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On Jan.

21, the company filed for Chapter 11 bankruptcy protection.

'Bloomberg' estimates that Terraform Labs' "assets and liabilities are both in the range of $100 million to $500 million," according to Engadget.

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The crypto firm's number of creditors is estimated to be between 100 and 199.

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Last March, former CEO Do Kwon was arrested in Montenegro for using a forged passport.

He is still in jail and awaits extradition to the U.S. He will likely be brought to America by mid-March to be tried for securities fraud charges, 'Bloomberg' reports.

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South Korea, Kwon's home country, has issued similar charges.

Which is what reportedly led Kwon, his family and some Terraform Labs employees to leave Singapore in 2022.

Kwon denied being "on the run" but was later placed on Interpol's "red notice" list, at which point his fake passport was discovered.

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Engadget reports that the disgraced CEO will likely meet a fate similar to that of Sam Bankman-Fried of FTX and Celsius Network's Alex Mashinsky.

Engadget reports that the disgraced CEO will likely meet a fate similar to that of Sam Bankman-Fried of FTX and Celsius Network's Alex Mashinsky.

Engadget reports that the disgraced CEO will likely meet a fate similar to that of Sam Bankman-Fried of FTX and Celsius Network's Alex Mashinsky