According to Foresight News, Terra has announced that a bankruptcy court order in the TFL Chapter 11 case authorizes the following actions: reopening the Shuttle Bridge to redeem wrapped assets on Terra Classic, and undelegating and destroying 150 million LUNA obtained from Terra community funding.
Under the court order, TFL plans to transfer all assets held in the Shuttle Bridge wallet to a new wallet and provide a new, simplified Shuttle Bridge interface. This will allow users to redeem wrapped assets from the Bridge wallet within 30 days. After this period, TFL intends to permanently close the Shuttle Bridge, and all remaining assets will be destroyed. TFL's proposed Chapter 11 plan has not yet been approved by the bankruptcy court and is expected to take effect no earlier than late September 2024.
Additionally, according to the bankruptcy court order and in accordance with a settlement between TFL and the SEC, TFL will begin the process of undelegating 125 million LUNA currently staked by 49 validators recommended by Terra. Once the LUNA is undelegated, the 125 million LUNA used for staking and an additional 2.5 million LUNA used for liquidity supply will be destroyed.
