Terraform Labs Plans to Sell Businesses Amid $4.5 Billion SEC Settlement
Bankrupt crypto firm Terraform Labs is selling four businesses as part of a $4.5 billion settlement with the SEC.
Announced on July 9, the sale includes Pulsar Finance, Station, Enterprise, and Warp, aiming to maximize value for creditors and stakeholders.
Terraform, which acquired Pulsar Finance in November 2023 and launched Enterprise in November 2022, continues to update Warp and Station. The sale aligns with Terraform’s broader operational wind-down under the settlement.
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Last month, Terraform agreed to pay $4.5 billion, including $3.6 billion in disgorgement, a $420 million civil penalty, and $467 million in prejudgment interest.
Co-founder Do Kwon also faces financial penalties and a ban from the crypto industry, ending the SEC’s lawsuit over securities violations and fraud.
Known for creating Terra Luna Classic (LUNC) and TerraUSD (USTC), Terraform faced a collapse when USTC lost its dollar peg in May 2022. The current token, Terra (LUNA), remains down 98% since its peak in May 2022.
Alexander Stefanov
Reporter at CoinsPress
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