The company that operates the virtual currency Terra files for Chapter 11 of the U.S. Bankruptcy Code.

Terraform Labs, the operator of the crypto asset (virtual currency) "Terra USD" that is said to have been involved in the collapse of the virtual currency Terra Luna, was ordered in a Delaware court in the United States to comply with Japan's Civil Rehabilitation Act.
It has been revealed that the company has filed for Chapter 11 bankruptcy protection. The company was co-founded by Korean entrepreneur Kwon DoHyoung and has been sued by the U.S. Securities and Exchange Commission (SEC).
ing. According to a filing filed with the court on the 21st (local time), Reuters and Bloomberg reported that the company's assets and liabilities range from $100 million to $500 million (approximately $14.8 billion to $740 million).
billion yen), and the number of creditors ranges from 100 to 199. Terra USD (UST) issued by the company maintains a fixed exchange ratio of 1:1 with the dollar through exchange with the related virtual currency Luna.
However, in May 2022, the operating system collapsed and a large-scale fire sale occurred. As a result, investor bankruptcies occurred one after another in various countries, resulting in a total of 50 trillion won (approximately 5.5 trillion won) worldwide.
It is said that more than 0 billion yen) in damage was caused. Mr. Kwon holds 92% of the company's shares, with co-founder Daniel Shin holding the remaining shares.
Kwon is currently being held in Montenegro on suspicion of using a fake passport. Prosecutors in South Korea and the United States accused Kwon of fraud.
The company is requesting that Mr. Kwon be extradited to Montenegrin authorities to face prosecution on charges of violating securities laws and securities laws. According to Kwon's lawyer, extradition proceedings are underway for Kwon in Montenegro.
is in the final stages, and it is possible that Mr. Kwon could be extradited to the United States by mid-March. In a statement, company CEO Chris Amani said, ``Terra's community and eco-friendly
The system has shown unprecedented resilience in the face of adversity, and this filing is a necessary step to resolve outstanding legal issues and continue moving toward our common goals." .
Last month, a U.S. District Court found Terraform Labs guilty of selling unregistered securities and dismissed charges of trading in swaps with unregistered securities. The court was then
"The Terraform Labs fraud case must stand trial by jury," the ruling said.