Terraform Labs, Creator of TerraUSD, Seeks Bankruptcy Due to Legal Battles

Terraform Labs, the company behind the now-closed TerraUSD (UST) stablecoin, has filed for bankruptcy protection in the United States.

The filing, made on January 21, mentions the company's estimated liabilities and assets to be between $100 million and $500 million.

The decision to seek bankruptcy protection is due to the legal challenges the company is facing.

Chris Amani, Terraform Labs' CEO, explained that it's a necessary step to deal with ongoing legal issues while continuing to work toward their goals.

The bankruptcy filing indicates that Terraform Labs has between $100 million and $500 million in debts and assets. This move comes shortly after the U.S. Securities and Exchange Commission (SEC) agreed to delay Do Kwon's fraud trial to March 25, following a request from Kwon's legal team.