Terraform Labs, founded by Do Kwon, is preparing for a Chapter 11 bankruptcy hearing scheduled for September 19. This important event will determine whether the company can reorganize or be forced to liquidate assets and close.

The company has faced numerous legal and financial challenges since the collapse of TerraUSD and LUNA in 2022, which wiped out $45 billion in market value.

Amid litigation and regulatory pressure, Terraform Labs is trying to sell assets such as Pulsar Finance and Warp. Recently, the liquidator of Three Arrows Capital filed a $1.3 billion lawsuit accusing the company of market manipulation.