Terraform Labs to sell 4 companies as part of wind-down
Bankrupt crypto firm Terraform Labs is seeking to sell four of its businesses as part of a $4.5 billion settlement with the US securities regulator.
Terraform said on July 9 that it is “actively exploring options” to sell its portfolio tracking platform Pulsar Finance, crypto wallet platform Station, no-code decentralized organization (DAO) management platform Enterprise, and smart contract automation protocol Warp.
Terraform acquired Pulsar Finance in November 2023, just months before it filed for Chapter 11 bankruptcy in Delaware in January. The company launched the enterprise a year ago in November 2022.
He still actively develops the Warp protocol and wallet with their respective updates in February and March.
The sale is an effort to “maximize value for creditors and other stakeholders” and is “part of a broader wind-down operation pursuant to an agreement with the US Securities and Exchange Commission,” he added.
Last month, Terraform reached a $4.5 billion settlement with the SEC — agreeing to pay about $3.6 billion in disgorgement, a $420-million civil penalty and about $467 million in prejudgment interest.
Together with Terraform, co-founder and former CEO Do Kwon agreed to pay $110 million in disgorgement, $14.3 million in prejudgment interest and $80 million in civil penalties.
The agreement also barred Kwon and Terraform from the crypto industry, leading to the SEC's February 2023 lawsuit alleging securities law violations and fraud.
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Terraform, which lost its peg to the dollar in May 2022, created a cryptocurrency called Terra Luna Classic (LUNC) from the US dollar algorithmic stable coin TerraUSD (UST), now called TerraClassicUSD (USTC).
The way the Terraform ecosystem was designed, DEPEG caused an unstoppable death spiral between USTC and LUNC prices, where the price of one was meant to balance the other. Both are now reduced by 100%.
The current price of the token Terra (LUNA) did not move on the news and fell 3% to $0.37 on the week – also a 98% decrease from the May 2022 high of $18.87 on CoinGecko.
Terraform has invited those interested in buying the businesses to contact investment banker CAVU Securities.
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