Terraform Labs (TFL) Announces Strategic Sale of Key Businesses as Part of Chapter 11 Bankruptcy Proceedings
- WBOYOriginal
- 2024-07-16 10:10:47332browse
Singapore, July 9, 2024 – Terraform Labs Pte. Ltd. (TFL), a leading software company specializing in blockchain technology, has announced a strategic sale process of its key businesses as part of its Chapter 11 bankruptcy proceedings.
Bankrupt crypto firm Terraform Labs has begun a strategic sale process of its key businesses, including the portfolio tracker Pulsar, the interchain wallet Station, the DAO management platform Enterprise, and the decentralized automation protocol Warp.
Terraform, the company behind the collapsed UST stablecoin, is selling these assets as part of its efforts to comply with a $4.5 billion settlement with the U.S. Securities and Exchange Commission (SEC). The company engaged CAVU Securities, LLC as its investment banker to handle the sale process.
Terraform is exploring options to sell the following businesses:
Pulsar: A comprehensive portfolio tracker indexing over 100 blockchains. It features a proprietary indexing SDK that abstracts protocols and RPC nodes, simplifying data integration for various blockchain projects. TFL acquired Pulsar Finance in November 2023, just months before filing for Chapter 11 bankruptcy in Delaware in January 2024. Pulsar handles vast amounts of data from multiple blockchains, making it easier for applications to integrate with the blockchain.
Station: A non-custodial interchain hot wallet initially designed for the Cosmos ecosystem. It supports both browser and mobile platforms and has over 600,000 downloads. This wallet offers users flexibility and security in managing their digital assets. Despite its financial difficulties, TFL has continued to actively develop the Station wallet, with the last update being made in March 2024. Station’s effectiveness and user-friendly design have contributed to its popularity and reliability.
Enterprise: A no-code platform designed to manage Decentralized Autonomous Organizations (DAOs). It provides tools for organization, treasury management, governance-based spending, and staking rewards distribution. Launched in November 2022, Enterprise simplifies DAO operations by allowing even those with limited technical knowledge to manage DAOs effectively. Its comprehensive toolset streamlines operations and makes it easier for DAOs to function.
Warp: An on-chain decentralized automation protocol that enables condition-based execution of smart contracts. This provides automation solutions within the blockchain space, allowing for efficient and secure smart contract operations. Despite its financial challenges, TFL has continued to develop the Warp protocol, with the last update being made in February 2024. Warp’s capabilities make it valuable for blockchain developers.
Terraform Labs’ decision to sell these assets is part of a broader strategy to maximize value for its creditors and stakeholders. The company continues to support its key projects while navigating its Chapter 11 bankruptcy proceedings.
According to TFL’s CEO Chris Amani, the company holds approximately $150 million in assets. The $4.5 billion settlement with the SEC includes $3.6 billion in damages, $420 million in civil penalties, and approximately $467 million in prejudgment interest.
Terraform co-founder and former CEO Do Kwon agreed to pay $110 million in corruption charges, $14.3 million in contingency interest, and $80 million in civil penalties in partnership with Terraform. The settlement also bars Kwon and Terraform from the crypto industry and settles the SEC’s February 2023 lawsuit accusing the company of securities law violations and fraud.
Terraform Labs launched the US dollar algorithmic stablecoin TerraUSD (UST), which lost its peg to the dollar in May 2022. This led to the creation of Terra Luna Classic (LUNC), pegged to TerraClassicUSD (USTC). The price of Terra (LUNA) remained flat after the news of the sale, falling 3% on the week to $0.38. LUNA is down 98% from its May 2022 peak of $18.87, according to CoinGecko.
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