Terraform Labs, Crypto Firm, Files for Chapter 11 Bankruptcy in the US

Cryptocurrency firm Terraform Labs, responsible for the collapsed TerraUSD and Luna tokens, has filed for bankruptcy in the US after losing $40bn of their value in May 2022. Co-founder Do Kwon, currently in jail in Montenegro, faces fraud charges in the US, South Korea, and ongoing legal proceedings in Singapore. The bankruptcy filing allows the company to continue operations, with CEO Chris Amani stating the action is necessary to resolve outstanding legal challenges. Do Kwon's arrest in Montenegro in March 2023 and subsequent guilty verdict for forging documents have led to a pending extradition decision to either South Korea or the US.