Terra Luna Classic

The maxi-trial of FTX founder Sam Bankman-Fried ended in November, putting an end to one of the darkest pages in the (short) history of cryptocurrencies. Today, however, another burning legal matter linked to the crypto world comes to an end: Terraform Labs, in fact, has just declared bankruptcy.

If you're wondering who the developers of Terraform Labs are, let's refresh your memory. The startup created the Terra LUNA and TerraUSD cryptocurrencies, which in 2022 were the victim of a harsh speculative attack, with which as many as 40 billion dollars were "burned" on the crypto market. The chain of events that followed the attack led to the collapse of the entire Terra LUNA and USDT system, and not even the creation of the LUNA 2 Token saved the day.

Bloomberg, in fact, explains that Terraform Labs declared bankruptcy in the United States of America today, Monday 22 January. According to the American newspaper, the company would have a debt of between 100 and 500 million dollars, as well as a number of creditors of between 100 and 199. At the moment, the company - which was founded in Singapore - is 92% owned owned by Do Kwon, who still holds the role of CEO.

Do Kwon was reported months ago for fraud, but when the warrant was issued against him he disappeared. Kwon was found and arrested in Montenegro after border agents in the Balkan country discovered him in possession of a false passport. Now, the CEO of Terraform Labs is awaiting extradition to the United States of America, which could be granted in March.

At the same time, Do Kwon is also wanted in South Korea - his native country - while most of his family and closest colleagues are still untraceable. Once it reaches the United States, therefore, the creator of Earth will find himself in big legal trouble.