“On September 19, a Delaware bankruptcy court approved a plan to liquidate cryptocurrency company Terraform Labs in bankruptcy proceedings. This is reported by Reuters. A judge approved the company’s bankruptcy plan, calling it a “preferred alternative” to further litigation over investor losses. The decision comes after Terraform Labs and its co-founder Do Kwon agreed to settle SEC claims by paying a $4.47 billion fine. […]”, — write: businessua.com.ua
On September 19, a Delaware bankruptcy court approved a plan to liquidate cryptocurrency company Terraform Labs in bankruptcy proceedings. About this Reuters reports.
A judge approved the company’s bankruptcy plan, calling it a “preferred alternative” to further litigation over investor losses.
The decision comes after Terraform Labs and its co-founder Do Kwon agreed to settle claims SEC by paying a fine of $4.47 billion.
At the same time, the regulator agrees to receive funds after compensating the company’s investors. Terraform Labs itself could not estimate the total amount of damage. According to preliminary estimates, the collapsed platform will be able to pay all interested parties between $184.5 million and $442.2 million in bankruptcy proceedings.
It will be recalled that in April, during the trial, the jury found Do Kwon and Terraform Labs guilty of defrauding investors and securities fraud.
In South Korea, numerous charges were brought against the entrepreneur, including violation of capital markets legislation.
Kwon was previously released from prison in Montenegro after serving time for trying to cross the border with forged documents. He is currently awaiting extradition to South Korea.
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