ReutersThe cryptocurrency company behind the crashed TerraUSD and Luna tokens has filed for bankruptcy in the US.
Terraform Labs’ tokens collapsed in May, losing $40bn of their value and contributing to the so-called “cryptocrash” of 2022.
Co-founder Do Kwon is currently in jail in Montenegro after having been found guilty of forging documents.
He has been charged with defrauding investors by US regulators and is awaiting extradition.
He also faces fraud charges in South Korea, his native country, so could be extradited there.
A third legal case is ongoing in Singapore, where the company is registered.
Cryptocrash
Terraform Labs’ Luna token came to prominence in December 2021, when its value began to rise from $5 to a high of $116 in April 2022.
Fans of Luna became known as “Lunatics”, with Mr Kwon referred to as their “king”.
Then suddenly, on 9 May 2022, it collapsed, losing 99% of…
