As a researcher with experience in the blockchain and cryptocurrency industry, I find this development deeply concerning. Terraform Labs, the developer of the Terra blockchain, has been a significant player in the space, but the recent settlement with the SEC over the UST algorithmic stablecoin marks the end of an era for the company.
The CEO of Terraform Labs, the organization behind the Terra blockchain, is urging the community to assume responsibility as the company gears up for shutting down its operations.
As per the announcement from CEO Chris Amani, the company plans to offload its Terra ecosystem projects such as Pulsar Finance, Station Wallet, and Enterprise DAO for sale. This decision comes after Terraform reached a $4.47 billion resolution with the Securities and Exchange Commission (SEC) in 2022 regarding their UST stablecoin algorithm, which experienced a considerable decline that year.
As a crypto investor, I’ve come to terms with the fact that Terraform Labs, as intended since its inception, will soon cease to exist. I made this announcement on X, expressing that it’s time for us to wind down all operations and bring them to a close.
Amani announced that Terraform intends to put forth a community proposition, the implementation of which would see the destruction of all unrealized Luna tokens. He clarified, “Any Luna tokens yet to be realized in our wallets will be incinerated by TFL,” marking a significant separation between the corporation and the cryptocurrency.
Amani advocated for the Terra and Terra Classic blockchains to continue being managed by the community. He emphasized, “The community must assume control over the chains,” promoting a self-governing model post-crisis.
In February 2023, the Securities and Exchange Commission (SEC) filed a lawsuit against Terraform and its founder Do Kwon, alleging they misled investors and illegally sold unregistered securities.
As a crypto investor, I received the news that Terraform Labs and its co-founder Do Kwon reached an agreement with the SEC on Wednesday. The settlement requires Terraform to pay a total of $3.704 billion, which includes a $3.58 billion disgorgement and a $420 million civil penalty. Moreover, Kwon is banned from serving as an officer or director in any public company. Additionally, he is obligated to contribute approximately $204 million to the bankruptcy estate, intended for compensating injured investors.
In July 2023, after Terraform filed for bankruptcy in Delaware during the first month of the year, Amani took over as CEO from Kwon.
Read More
Sorry. No data so far.
2024-06-13 18:29