Terraform Labs to Sell 4 Businesses Amid Bankruptcy Proceedings
Bankrupt crypto firm Terraform Labs has announced plans to sell four of its businesses as part of a $4.5 billion deal with the United States Securities and Exchange Commission (SEC).
The four businesses that Terraform Labs is looking to sell are its portfolio tracking platform Pulsar Finance, crypto wallet platform Station, the no-code decentralized autonomous organization (DAO) management platform Enterprise, and its smart contract automation protocol Warp.
Terraform acquired Pulsar Finance in November 2023, shortly before filing for Chapter 11 bankruptcy in January.
Enterprise was launched a year earlier in November 2022.
Despite its financial difficulties, Terraform Labs continues to actively develop the Warp protocol and Station wallet.
The company stated that the sale of these businesses is part of its broader strategy to maximize value for its creditors and stakeholders in compliance with the terms of its settlement with the SEC.
Terraform Labs gained attention for creating Terra Luna Classic (LUNC), a cryptocurrency linked to the algorithmic stablecoin TerraUSD (UST).
However, in May 2022, UST lost its peg to the US dollar, leading to a downward spiral in the prices of USTC and LUNC. Both tokens have essentially lost their entire value since then.
The collapse of Terra not only caused a significant loss in the crypto ecosystem, wiping out nearly $40 billion from the market, but also led to the downfall of several crypto hedge funds that had provided collateral to the firm.
In April 2024, a jury found Terraform Labs and co-founder Do Kwon guilty of defrauding investors in a civil case brought by the SEC.
The announcement of the sale did not have a significant impact on the price of Terra, the company’s current token, which
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