As an analyst with experience in the blockchain and cryptocurrency industry, I find Terraform Labs’ decision to dissolve and leave the community to oversee the blockchain ecosystem unprecedented but not entirely surprising. The SEC settlement, which leaves fraud victims without meaningful relief, has raised concerns among many in the community.
As a analyst, I would rephrase that statement as follows: I have learned that Terraform Labs intends to disband and relinquish their role in overseeing the Terraform blockchain ecosystem. The responsibility for monitoring its progression now falls upon the Terraform community.
Following a $4.47 billion agreement with the Securities and Exchange Commission (SEC), Terraform Labs has declared their intention to disband. Consequently, the control and direction of the blockchain will now fall upon the Terraform community.
As a crypto investor, I’ve followed TFL closely, and I’ve come to terms with the fact that their intention was always to dissolve the company at some point. And unfortunately, that time has now arrived. The CEO, Chris Amani, announced on X that we should expect a complete wind-down of their operations.
In the process of winding down, the corporation intends to dispose of its assets located in the Terra system, encompassing Pulsar Finance, Station Wallet, and Enterprise DAO.
As a crypto investor, I can’t help but express my concern over the recent SEC settlement with Terraform. Some of us in the community are questioning the outcome, as it seems to offer little to no real compensation for those who have been victimized by alleged fraud.
As a crypto investor, I’d rephrase Paul Grewal’s statement as follows: “Although it’s expected of him to boast about a $4.7 billion settlement with Kwon and the collapsed Terraform, the SEC’s role in this case is merely that of an unsecured creditor in the bankruptcy proceedings. The order only mandates Kwon to transfer $7 million of his assets, which he already possesses, providing no substantial relief for the victims of the alleged fraud.”
Community oversight
As a crypto investor, I can interpret Amani’s statement as follows: “I think it’s essential for the community to assume control over the blockchain. There are teams and developers eager to make this happen, so keep an eye on the forums for updates.”
In the Terra ecosystem, the level of community involvement in overseeing the blockchain is unusual yet feasible. The platform continues to function effectively through diverse decentralized applications and associated tokens.
One unique aspect that makes $LUNA stand out in the crypto world is its well-diversified token holder distribution.— Will Chen (@stablechen) June 13, 2024
As an analyst, I’ve observed a substantial drop in the value of Terra blockchain tokens, including LUNA 2.0. Specifically, LUNA 2.0 has experienced a decline of approximately 97% in value.
SEC settlement
Based on documents submitted to the court on June 12th, Terraform Labs has reportedly agreed to a $4.47 billion settlement with the Securities and Exchange Commission (SEC), following the collapse of TerraLuna (LUNC) and TerraUSD (UST).
SEC prosecutors proposed a penalty following a two-week trial in March and the disclosure of a preliminary deal at the end of the previous month. The jury reached a verdict in March, holding Terraform and its founder, Do Kwon, liable for the company’s collapse in 2022. Amani, who had been Terraform’s COO prior, took over the role from Kwon in July 2023.
A judicial approval is required for this settlement in New York, which, if realized, could rank among the most significant cryptocurrency firm-regulator resolutions in the U.S. Initially, the Securities and Exchange Commission (SEC) sought $5.3 billion in penalties from the implicated parties.
The penalty imposed is greater than the one the U.S. Justice Department imposed on crypto exchange Binance. TerraForm sought bankruptcy protection in a Delaware court during January.
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2024-06-13 16:36