Terraform Labs gets court approval to wind down its operations in the latest bankruptcy hearing, gaining investors’ attention. A US Bankruptcy judge has approved the firm’s plan, which came after its settlement with the US SEC. Notably, the news appears to have boosted the market sentiment, as evidenced by the rally the LUNA and LUNC prices today.
Terraform Labs Receives Court Nod To Wind Down Operations
A recent Reuters report highlighted the development, saying that the Terraform Labs has received legal approval to close its operations. In the latest bankruptcy hearing, Judge Brendan Shannon approved the firm’s plan to liquidate its assets, sparking investors’ optimism.
The approval follows a settlement of the firm with the US SEC. Notably, the agency has previously accused the company and its founder Do Kwon of defrauding investors after the TerraUSD and LUNA collapse in 2022. Notably, the collapse has resulted in around $40 billion losses for the traders.
Meanwhile, the Judge has dubbed the approval as a “welcome alternative” to the extended lawsuit. Precisely, the approval would allow the company to start liquidating its remaining assets, with an estimated payout between $184.5 million and $442.2 million to investors and other stakeholders.
However, the firm said that the exact amount of the eligible crypto losses remains unknown, saying that it is “impossible to estimate” the total losses that could be returned. Notably, Terraform Labs has agreed to settle the SEC lawsuit for $4.47 billion, though the agency is not expected to collect much from this settlement.
The regulator has agreed to receive the payment only after the crypto losses claims are compensated during the liquidation process. This move highlights the agency’s acknowledgment of the significant losses of investors.
LUNC and LUNA Prices Rally
During writing, Terra Luna Classic price was up over 8% and traded at $0.00008743, after touching a 24-hour high of $0.00008829. Its trading volume also jumped nearly 85% to $26.17 million. Simultaneously, LUNA price rose about 9% to $0.4033, while its trading volume soared 42% to $47.12 million.
The LUNA has touched a 24-hour high and low of $0.4092 and $0.3711. Furthermore, CoinGlass data showed that the LUNC and LUNA Futures Open Interests soared more than 28% and 27%, respectively, indicating growing market confidence.
Notably, a recent LUNC price analysis shows that the crypto could target $0.000135 if it breaks a crucial resistance ahead. This bullish forecast, amid Terraform Labs’ bankruptcy development, appears to have bolstered the market sentiment, evidenced by the recent surge in prices.
In addition, several positive developments in the Terra ecosystem have also boosted the market sentiment. For instance, Terra Luna Classic has successfully implemented the v3.1.5 upgrade which focuses on security and other key aspects of the ecosystem.
The post Terraform Labs Gets Court Approval To Wind Down Operations, LUNC & LUNA Rally appeared first on CoinGape.
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