Terraform Labs Gets Approval to Wind Down

Terraform Labs has received court approval to wind down its operations as part of its bankruptcy plan after settling with the SEC for $4.47 billion over investor fraud linked to the collapse of its Terra ecosystem. U.S. Bankruptcy Judge Brendan Shannon approved the plan, describing it as a 'welcome alternative' to further litigation. Terraform, which filed for Chapter 11 in January, estimates it will pay between $184.5 million and $442.2 million to crypto purchasers and stakeholders. The SEC will collect little from the settlement until these claims are resolved. Co-founder Do Kwon is personally liable for $110 million of the settlement and faces related criminal charges in the U.S. and South Korea. The total value of eligible crypto losses remains 'impossible to estimate,' according to the company.