Terraform Deal With Co-Founder Brings $45 Million for Creditors

Terraform Labs, the fallen digital assets business, has reached a deal with its co-founder Do Kwon, one of its own funds, and the Avalanche cryptocurrency and blockchain platform that would help bring in $45.5 million for its creditors.

The proposed deal would have Kwon’s Luna Foundation Guard Ltd. hand over AVAX tokens to a Terraform wind-down trust, which would then exchange them with Avalanche (BVI) Inc. for the cash payment meant for cryptocurrency loss recoveries, a Terraform plan liquidator told the US Bankruptcy Court for the District of Delaware on Wednesday.

The Terraform companies’ liquidation plan, approved by a court ...