Terraform Labs CEO Announces Company Dissolution Plans for Community to Take Over Terra Blockchain

After the news of Terra blockchain developer Terraform Labs reaching a settlement with the U.S. Securities and Exchange Commission (SEC) was made public, Terraform Labs CEO Chris Amani announced plans to dissolve the company on Thursday (13th) and asked the community to take over the Terra network. The company also plans to sell several projects within the Terra ecosystem.

The algorithmic stablecoin UST in the Terra ecosystem experienced a severe anchor 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 crypto asset 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 will pay a fine of $4.47 billion.

Amani stated that the community will have to take over ownership of the Terra blockchain, “I believe there are several teams and developers who want to do so, and you should see relevant information on the forum soon.”

Amani also mentioned that Terraform Labs plans to destroy all unallocated LUNA through community proposals, “Any remaining allocated assets in our wallets will be destroyed 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 for these products to continue operating 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 January of this year.

Reference:
The Block, Chris Amani’s tweet

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