Terraform Labs says bankruptcy filing will allow it to appeal SEC lawsuit

Terraform Labs stated in a document that its recent bankruptcy filing will allow it to make a "life or death" appeal in the securities fraud case filed by the US SEC. The case will go to trial in March for the remaining fraud charges brought by the SEC, and such appeals typically require companies to post a bond for 110% of the judgment value before proceeding with the trial. Terraform's operations director, Chris Amani, wrote in a court document, "The exact size of the penalty judgment is still unknown, but it is likely to exceed the debtor's assets. Without the protection of Chapter 11, the debtor may have to liquidate after the trial." Terraform Labs intends to argue in the appeal that the SEC has no authority over the company because its cryptocurrency tokens are not "securities."