Following the public announcement of an agreement reached with the U.S. Securities and Exchange Commission (SEC), Terraform Labs, a developer on the Terra blockchain, CEO Chris Amani announced plans to dissolve the company on Thursday (13th) and requested the community to take over the Terra network. The company also plans to sell several projects within the Terra ecosystem.
The stablecoin UST in the Terra ecosystem suffered a severe destabilization event in May 2022, leading to the collapse of the Terra chain and its native token LUNA. In February 2023, the U.S. SEC accused Terraform Labs and its founder Do Kwon of orchestrating a cryptocurrency securities fraud involving UST and other cryptocurrencies. According to reports, the SEC submitted a proposed final consent judgment this Wednesday and requested the judge’s approval. According to court documents, Terraform Labs has agreed to settle with the SEC and pay a fine of $4.47 billion.
Amani stated that the community will have to take over ownership of the Terra blockchain, saying, “I believe there are several teams and developers who want to do this, and you should soon see relevant information on the forum.”
Amani also mentioned that Terraform Labs plans to burn all unallocated LUNA through community proposals, stating, “Any remaining allocated assets in our wallets will be burned by TFL.” The company will also initiate the process of selling several of its products, including Pulsar Finance, Station Wallet, and Enterprise DAO, with expectations that these products will continue to operate even after the company’s dissolution.
Chris Amani, formerly the COO of Terraform, took over as CEO in July 2023, succeeding Kwon. Terraform filed for bankruptcy protection in the state of Delaware in January of this year.
Reference:
The Block, Chris Amani’s tweet