Terraform Labs receives approval from U.S. Bankruptcy Court to begin liquidation

PANews reported on September 20 that according to Reuters, Terraform Labs was approved by the U.S. Bankruptcy Court on Thursday to begin liquidation. U.S. Bankruptcy Judge Brendan Shannon approved Terraform's bankruptcy plan at a hearing in Wilmington, Delaware, calling it a "welcome alternative" to continued litigation for investor losses. Terraform estimates that it will be able to pay $184.5 million to $442.2 million to cryptocurrency investors and other stakeholders as part of bankruptcy liquidation. According to previous news, in June this year, Terraform Labs reached a settlement with the U.S. Securities and Exchange Commission (SEC) and agreed to pay a fine of $4.47 billion to the SEC. The SEC previously accused Terraform and its founder Do Kwon of defrauding cryptocurrency investors, who lost about $40 billion when TerraUSD and Luna tokens collapsed in 2022. Do Kwon faces criminal charges in both the United States and South Korea, but he denies any wrongdoing.