Terraform Labs Seeks Bankruptcy Protection in US
Terraform Labs, the project that issued UST stablecoin is now filing for Chapter 11 bankruptcy filing. The official filings of the firm revealed $100 million worth of assets and $500 million in liabilities. Terraform founder Do Kwon has reportedly filed for bankruptcy proceedings in the area of United States.
The firm has submitted the bankruptcy filing at the District Court of Delaware as per a 21st January 2024 filing. Chris Amani, the CEO of Terraform Labs noted that Terra investors and community members have shown an unprecedented amount of patience and resilience against all odds.
He noted that the platform is opting to continue its progress in addressing various legal challenges that are currently outstanding. He further stated that the firm has overcome big challenges before and managed to salvage the project after de-pegging. He further stated that the firm is looking forward to the resolution of the pending legal proceedings associated with the stablecoin project.
The filing has arrived only four days after the Securities and Exchange Commission postponed the fraud trial of Do Kwon to 25th March. The agency received a request from the lawyers to prolong the proceedings.
Terraform Founder to Face Multi-billion Dollar Securities Fraud Charges
The Securities and Exchange Commission of the United States brought a multi-billion dollar crypto securities fraud charge against Do Kwon in February 2023. After the initial filing, the fonder went AWOL until he was discovered by the authorities in Montenegro in March 2023.
There he was arrested for attempting to leave the country using falsified travel documents. He was detained at the island nation for a while and the local courts denied the appeal of authorities for extradition to either the United States or South Korea.
If he is to travel to either jurisdiction, he may have to deal with multiple lawsuits in those nations. If the authorities are able to prove allegations against Kwon, he may have to serve 40-year sentence where he has committed investor fraud and other crimes associated with the Terraforma Labs issued tokens.
Hackers Mock Algorand CEO after Hacking her X Account for an Hour
Algorand CEO Staci Warden recently faced some issues with her X account. The project aims to be a green decentralized blockchain network as per the Algorand Foundation’s official website. Following the hack attempt, the Algorand Foundation X account posted an update on the platform informing the investors regarding the hacking incident.
The page also asked the investors to refrain from clicking on any links shared on her X timeline or responding to direct messages. The hackers posted on the X account of Warden after hacking it on 26th January noting that the Algorand community was poor and used an inappropriate racial slur in the same sentence.
After this post, the hacker went on to post on the profile asking community members to sell Algorand coins and purchase ETH. Following these posts, the hackers continued to post fabricated stories about how Justin Sun, co-founder of the Tron project was going to boost Algorand to new heights in a satirical manner.
The hackers noted that all they had to do was to give control of the project to Sun and allow him to mint new tokens in the form of TrueUSD. Hackers also mentioned that he accepted the offer and Algorand will soon be pegged to a very real USD to start a new era of digital commerce. At the same time, hackers took a dig at Sun noting that his crypto projects will lead to the next big collapse in crypto.
