Terraform Labs’ Bankruptcy Plan Cleared Over Creditor Objections

Terraform Labs Pte. won approval of its liquidation plan after a bankruptcy judge overruled the objections of some retail users of the fallen digital asset platform.

Judge Brendan Shannon of the US Bankruptcy Court for the District of Delaware on Thursday said he’d enter an order confirming Terraform’s liquidation plan. His ruling comes three months after the company agreed to pay $4.47 billion to resolve a US Securities and Exchange Commission lawsuit related to the firm’s 2022 collapse.

During Thursday’s hearing, Shannon heard from former users of the platform who said their claims were being treated unfairly. He overruled those ...