Key takeaways:
- In order to wind down operations as part of a $4.5 billion arrangement with the US securities regulator, bankrupt crypto company Terraform Labs is trying to sell four of its businesses.
- The Warp protocol and Station Wallet are still being actively developed; the most recent versions were released in February and March, respectively.
In order to wind down operations as part of a $4.5 billion arrangement with the US securities regulator, bankrupt crypto company Terraform Labs is trying to sell four of its businesses.
On July 9, Terraform announced that it is “actively exploring options” to sell Pulsar Finance, its platform for tracking portfolios, Station, its crypto wallet, Enterprise, its no-code platform for managing decentralized autonomous organizations (DAOs), and Warp, its smart contract automation protocol.
In November 2023, Pulsar Finance was acquired by Terraform, shortly before the company filed for Chapter 11 bankruptcy in Delaware in January. November 2022 marked the company’s launch of Enterprise one year earlier.
The Warp protocol and Station Wallet are still being actively developed; the most recent versions were released in February and March, respectively.
The sale, it continued, is a part of its “broader wind-down of operations under the terms of its settlement with the US Securities and Exchange Commission” and aims to “maximise value for its creditors and other stakeholders.”
Terraform agreed to pay approximately $3.6 billion in disgorgement, a $420 million civil penalty, and approximately $467 million in prejudgment interest as part of a $4.5 billion settlement with the SEC last month.
Co-founder and former CEO Do Kwon of the company consented to pay $110 million in disgorgement, $14.3 million in prejudgment interest, and a $80 million civil penalty jointly with Terraform.
As a result of the agreement, Kwon and Terraform were also effectively barred from the crypto market, resolving the SEC’s February 2023 complaint that accused them of fraud and violations of securities laws.
The US dollar algorithmic stablecoin TerraUSD (UST), now known as TerraClassicUSD (USTC), lost its peg to the US dollar in May 2022. Terraform launched a crypto called Terra Luna Classic (LUNC), which was linked to it.
Since the price of one was intended to balance the price of the other, the depeg produced an inescapable death spiral for the prices of USTC and LUNC due to the way Terraform’s ecosystem was constructed. At this point, both have practically dropped to zero.
Terraform urged anyone interested in purchasing one of its companies to get in touch with CAVU Securities, its investment banker.
