Terraform Labs’ Chapter 11 bankruptcy protection would allow the company to pursue an appeal against the U.S. Securities and Exchange Commission’s securities fraud lawsuit, the company said in a Tuesday filing.

“[The bankruptcy protection] is critical to the Debtor’s ability to operate as a going concern, preserve value for its creditors and stakeholders (including the Terra community), provide an orderly process for resolving competing claims against it, and pursue an appeal of the SEC Enforcement Action,” wrote Terraform Labs CEO Chris Amani in the filing. 

The company filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on Jan. 21, with estimated assets and liabilities between $100 million and $500 million. The first day hearing for the …