Terraform Labs, the company founded by Do Kwon and responsible for the discontinued stablecoin TerraUSD (UST), has filed for Chapter 11 bankruptcy protection in the United States. The filing, made at the United States Bankruptcy Court for the District of Delaware on January 21, reveals that the firm has estimated assets and liabilities ranging between $100 million and $500 million. This move marks a significant development for Terraform Labs, signalling financial challenges and seeking legal protection through the bankruptcy filing.