|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cryptocurrency News Articles
Terraform Labs Officially Receives Green Light From U.S. Bankruptcy Court to Commence Winding Down of Operations
Sep 21, 2024 at 07:00 am
This pivotal ruling follows the company's recent settlement with the U.S. Securities and Exchange Commission (SEC) over allegations of fraud tied to the catastrophic collapse of its TerraUSD stablecoin and LUNA token, which collectively erased $40 billion in value in 2022.
Terraform Labs, the entity behind the Terra [LUNA] ecosystem, has received approval from a U.S. bankruptcy court to begin winding down its operations. This decision comes after the company settled with the U.S. Securities and Exchange Commission (SEC) over allegations of fraud related to the spectacular collapse of its TerraUSD stablecoin and LUNA token, which resulted in a combined loss of $40 billion in value during 2022.
During a crucial Chapter 11 bankruptcy reorganization hearing on September 19, Judge Brendan Shannon supported Terraform's plan, describing it as a preferable option to prolonged legal disputes regarding investor losses.
According to a recent report by Reuters, Judge Shannon approved Terraform's bankruptcy plan during a hearing in Wilmington, Delaware, calling it a “welcome alternative” to further litigation over the investor losses.
For context, Terraform Labs, which filed for bankruptcy earlier this year, settled with the SEC for $4.47 billion after a jury found the company guilty of defrauding investors. However, the SEC will only receive payments from this settlement after Terraform fulfills its obligations to compensate investors for their crypto losses.
In the latest update, the company stated that it cannot currently estimate the total value of these losses.
Commenting on the same, Reuters stated,
“Terraform estimated that it will be able to pay between $184.5 million and $442.2 million to crypto purchasers and other stakeholders as part of its bankruptcy liquidation.”
Impact on Terra Luna Classic and Tera Luna's price
Despite the recent developments, Terra Luna Classic [LUNC]'s price did not initially show a negative reaction. As of the latest update, Terra Luna Classic was trading at $0.00008717, up 2.22% in the past 24 hours. Meanwhile, Terra Luna (LUNA) experienced a slight dip of 0.16%, trading at $0.3924, according to CoinMarketCap data.
However, shortly after the U.S. court's decision, Terra Luna Classic surged over 8%, reaching $0.00008743 with a 24-hour high of $0.00008829. The trading volume for Terra Luna Classic also spiked nearly 85%, hitting $26.17 million.
Meanwhile, LUNA's price increased by about 9% to $0.4033, with a 42% increase in trading volume to $47.12 million.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
-
- Securitize Enhances Tokenized Asset Liquidity Through Wormhole Integration
- Sep 21, 2024 at 10:50 am
- Real-world-asset (RWA) tokenization infrastructure provider Securitize has chosen Wormhole as its official interoperability provider to facilitate cross-chain
-
- Tether (USDT) Supply on the TON Blockchain Crosses $1B, Reaches 5M Weekly Active Users
- Sep 21, 2024 at 10:50 am
- The Open Network (TON), the network tied to Telegram tap games, reached a peak of 5M active weekly users.
-
- Tron Blockchain’s Founder, Justin Sun, Is Looking to Pick up a Fight with Ethereum’s Vitalik Buterin
- Sep 21, 2024 at 10:50 am
- This was revealed in a message on X on the evening of September 19. In the tweet, Sun declared: “The atmosphere is so intense; it’s making me want to have a fight with @VitalikButerin at @CryptoFightWeek.”
-
- George From Cryptos RUs Predicts Bitcoin Will Hit $250K to $300K by 2025
- Sep 21, 2024 at 10:50 am
- The crypto world is once again buzzing with optimism as Bitcoin edges closer to breaking the $65,000 mark. Driven by strong economic data from the U.S. and rising demand for BTC-spot ETFs, the current market trend has discussions about a massive bull run by 2025. But how high could Bitcoin go in the next cycle?
-
- Circle Plans Wall Street HQ Debut as Tether Hires Ex-PayPal Exec
- Sep 21, 2024 at 10:50 am
- Stablecoin issuer Circle is moving forward with its initial public offering (IPO) debut and plans to shift its headquarters to Wall Street in 2025
-
- The United States Securities and Exchange Commission (SEC) gave Nasdaq the go-ahead to list and trade shares of options
- Sep 21, 2024 at 10:50 am
- In a Sept. 20 notice, the SEC approved options trading for the iShares Bitcoin Trust under the ticker symbol IBIT on Nasdaq.
-
- Declining Usage and Network Activity
- Sep 21, 2024 at 10:50 am
- Recent data from Bitcoin Visuals highlights the stark drop in the Lightning Network's capacity, which reflects a significant decline in user activity.
-
- Sky (MakerDAO) to Eliminate All WBTC Exposure over Justin Sun Ties
- Sep 21, 2024 at 10:30 am
- Sky, formerly MakerDAO, will offboard WBTC over Justin Sun ties. This decision follows a governance vote that ended on Thursday, September 19.
-
- Cryptocurrency Exchange BingX Announces Withdrawal Services Will Resume on Sept. 21, 2024, for Certain Digital Assets
- Sep 21, 2024 at 10:25 am
- According to the exchange's announcement, withdrawals for Tether's US dollar stablecoin USDT $1.00, Circle's US dollar stablecoin USDC $1.00