Terraform Labs Receives Approval to Suspend its Operations
Main page News, Terra

A bankruptcy court has granted Terraform Labs approval for the company to suspend operations.

Algorithmic stablecoin company Terra is estimated to pay approximately $184.5 million and $442.2 million to stakeholders as part of the bankruptcy process.

This recent development comes after Terraform previously closed another chapter, this time in connection with a lawsuit filed by the SEC.

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In February last year, the SEC charged Terraform and its co-founder Do Kwon with defrauding and misleading investors with its algorithmic stablecoin, Terra USD (UST), which had collapsed a year earlier.

The dispute over the amount of fines to be paid was settled in June, when Terraform Labs agreed to pay $4.7 billion in fines in the US District Court for the Southern District of New York.

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