Cryptocurrency world in May 2022 Terra (LUNA) and stablecoin TerraUSD (UST) was shocked by the gigantic collapse. This collapse 40 billion dollars Do-Kwon, one of the founders of Terraform Labs, the company behind these cryptocurrencies, was jailed in Montenegro last year. He was also accused of fraud and sentenced to prison in countries such as the US and South Korea.

Today there were new developments around Terraform Labs. The company is located in the US file for bankruptcy found it.

The company wants to continue its activities in the Web3 space

The “Chapter 11 bankruptcy petition” was filed in the state of Delaware. The company took this step as “will allow it to continue its activities and a strategic move to support legal cases in places like the US and Singapore” he described. It is already a bankruptcy filing of sorts that will allow them to continue their operations in “Chapter 11.” Terraform Labs said it will continue to expand its Web3 business. It had recently launched a cryptocurrency wallet called Station v3.

Estimated assets of Terraform Labs, according to court documents 100 to 500 million between dollars. Furthermore, the company says its debt is at this level. It was also reported that the number of creditors was between 100 and 199.

Terraform Labs’ LUNA token was very popular in late 2021 and early 2022. It even reached a level of $119. However, in May 2022, it suddenly collapsed, losing 99% of its value within 48 hours. This follows the collapse of stablecoin UST, which normally should not have fallen. UST, which also belongs to the same company, fell to $0.02, although it should have remained constant at $1. What happened caused billions of dollars to be lost.

LUNA is trading at $0.60, down about 8% at the time of writing. Bitcoin costs about $40,807.

For what happened during the collapse of LUNA: