Terraform Labs Sets August 10 Deadline for Chapter 11 Bankruptcy Lawsuits Claims

Terraform Labs announced on its official X account that the deadline for filing claims in TFL and TLL’s Chapter 11 bankruptcy lawsuits is August 10

Terraform Labs announced the deadline for filing claims in the TFL and TLL Chapter 11 bankruptcy lawsuits on its official X account. The business advised Terraform Lab’s claimants to submit their paperwork by August 10 at 09:00 UTC.

Terraform Labs, which created TerraUSD, filed for Chapter 11 bankruptcy with the Delaware bankruptcy court on January 21, according to Reuters. The filing aimed to halt a class action lawsuit over the collapse of the Terra ecosystem.

However, Terraform Labs sees its Chapter 11 petition as a strategic move to continue operations and address pending litigation in Singapore and the US, particularly with the SEC. Despite challenges, Terraform Labs has expanded its Web3 offerings with recent acquisitions like Pulsar Finance, a cross-chain portfolio manager, and the launch of Station v3, a new cryptocurrency wallet, demonstrating strong growth commitment.

Here are some key highlights from the Terraform Labs announcement:

General Bar Date Set for Non-Governmental Claims in TFL, TLL Chapter 11 Cases

The General Bar Date for filing non-governmental claims in the Chapter 11 bankruptcy cases of Terraform Labs Pte Ltd (TFL) and Terraform Labs Limited (TLL) has been established. According to the announcement, all non-governmental creditors with claims against TFL prior to January 21, 2024, or claims against TLL prior to July 1, 2024, must file their claims by August 9, 2024, at 5:00 p.m. ET.

Moreover, governmental units with claims against TFL must file their claims by August 9, 2024, while those with claims against TLL have until December 30, 2024, to submit their paperwork. It's crucial for creditors to note and adhere to these deadlines to ensure their claims are included in the Chapter 11 cases.

Procedures for Filing Claims Outlined by Terraform Labs

Terraform Labs provided clear instructions on how to file claims in the Chapter 11 cases. Creditors are required to submit their claims in English and U.S. dollars on specified claim forms. These forms can be filed electronically through Epiq Case Management Solutions LLC or submitted via mail to the Epiq Claim Department.

The announcement also highlighted that failure to meet the General Bar Date could result in creditors losing their rights to vote on a Chapter 11 plan and receive distributions from the debtors’ Chapter 11 estates. Creditors are advised to consult the claim procedures and act promptly to ensure their claims are filed within the stipulated timeframe.

Claims Related to Digital Assets Excluded from General Bar Date

Significantly, the General Bar Date does not apply to claims related to the purchase or sale of digital assets within the Terra ecosystem on or before the applicable petition date, i.e., January 21, 2024, for TFL and July 1, 2024, for TLL. These Excluded Crypto Claims will have a later bar date to be announced by the debtors.

This exclusion and separate treatment of crypto-related claims in the bankruptcy proceedings stem from the unique complexities involved in handling digital assets within the legal framework of bankruptcy. Terraform Labs will provide further updates on the later bar date for Excluded Crypto Claims.

Mixed Reactions Within Crypto Community as LUNC, USTC Await Fate

The announcement of the claim filing deadlines has evoked mixed reactions within the crypto community, especially among LUNC and USTC investors. As these tokens continue to trade and await regulatory clarity, the structured process and filing deadlines may restore some credibility to the network, potentially driving bullish momentum for LUNC.

At the time of writing, LUNC has seen a surge of 3.11%, currently trading at $0.00007948, while USTC is showing a slight gain of 0.38%, trading at $0.00811. Meanwhile, XDEFI is up 4.23%, trading at $0.4347.

Terraform Labs Awaits Pending SEC SettlementAfter Terraform Labs’ bankruptcy filing in January 2024, the company's pending $4.47 billion settlement with the U.S. Securities and Exchange Commission (SEC) entered a new phase.

The settlement, which was reached in June 2024, aimed to resolve accusations of investor fraud over the marketing of TerraUSD (UST) as a security. As part of the agreement, Terraform Labs faced a disgorgement of $4.05 billion and a $420 million civil penalty.

しかし、Terraform Labsが和解が完全に実現する前に連邦破産法第11章の適用を申請したため、複雑な事態が生じた。その結果、SECの請求は破産手続きにおいて無担保請求として扱われることになりました

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