PODGORICA,
MONTENEGRO
–
JUNE
16:
Do
Kwon
is
taken
outside
of
court
on
June
16,
2023
in
Podgorica,
Montenegro.
Cryptocurrency
TerraUSD
and
its
companion
token
Luna
collapsed
in
2022,
wiping
out
approximately
40
billion
USD
from
the
cryptocurrency
market
and
Do
Kwon,
the
founder
was
charged
with
fraud
by
American
prosecutors
following
his
arrest
in
Montenegro.
(Photo
by
Filip
Filipovic/Getty
Images)
Filip
Filipovic
|
Getty
Images
News
|
Getty
Images
Terraform
Labs,
the
company
behind
the
stablecoin
TerraUSD,
which
collapsed
and
roiled
cryptocurrency
markets,
filed
for
Chapter
11
bankruptcy
in
the
United
States,
according
to
court
papers
filed
on
Sunday.
Singapore-based
Terraform
labs,
in
a
filing
with
the
bankruptcy
court
in
Delaware,
listed
assets
and
liabilities
in
the
range
of
$100
million
to
$500
million.
Recently,
a
federal
judge
postponed
the
trial
of
the
U.S.
Securities
and
Exchange
Commission
(SEC)
against
the
company
and
its
co-founder,
Do
Kwon,
over
an
alleged
$40
billion
cryptocurrency
fraud.
Kwon
and
Terraform
Labs
were
held
responsible
for
two
cryptocurrencies
whose
collapse
caused
turbulence
in
crypto
markets
around
the
world
in
2022.
The
SEC’s
civil
case
against
Terraform
and
Kwon
is
linked
to
the
collapse
of
TerraUSD,
a
“stablecoin”
designed
to
maintain
a
constant
$1
price,
and
the
more
traditional
token
Luna,
which
closely
associated
with
TerraUSD.
Both
cryptocurrencies
lost
an
estimated
$40
billion
or
more
when
TerraUSD
failed
to
maintain
its
$1
peg
in
May
2022.
watch
now
