Terraform Labs, the entity behind TerraClassicUSD, has filed for Chapter 11 bankruptcy as a tactical move in its legal struggle with the SEC. The bankruptcy filing, according to CEO Chris Amani, is pivotal for their appeal against the SEC's charges. Terraform Labs aims to bypass the requirement of a supersedeas bond, a standard procedure in such appeals, using the protections offered by Chapter 11. This legal strategy is part of their broader defense, challenging the SEC's authority over their crypto assets and questioning the jurisdiction of the case.
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