Terraform Labs files for Chapter 11 bankruptcy protection amidst legal pressures over TerraUSD collapse

Terraform Labs, a crypto firm based in Singapore, has filed for Chapter 11 bankruptcy protection in Delaware due to mounting legal pressures following the collapse of its algorithmic stablecoin, TerraUSD, last year. The company estimates its assets and liabilities to be between $100 million and $500 million. The bankruptcy filing will allow Terraform Labs to continue executing its business plan while navigating ongoing legal proceedings, including representative litigation pending in Singapore and US litigation. The company is currently facing an enforcement action from the Securities and Exchange Commission (SEC) and is also a defendant in a class action lawsuit brought by TerraUSD investors in Singapore.