Terraform Labs is officially shutting down as its bankruptcy plan has been accepted by the court. The company, heavily scrutinized by the SEC, was accused of fraudulent activities that resulted in a massive $40 billion loss for its investors when TerraUSD and Luna tokens collapsed in 2022.
This marks the end of a prolonged legal battle between Terraform Labs and the SEC, bringing some resolution to the investors who have been impacted. The court's acceptance of the bankruptcy plan signifies that the company can now proceed with its planned closure.
Investors are left with critical decisions to make regarding their next steps, as the lingering effects of this collapse continue to be felt in the cryptocurrency market.
