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User access to #Terraform Labs will be severely limited in the United States after a recent verdict in an SEC complaint
As a result of the SEC's request to limit the business's activities, Terraform Labs alerted users that the court may compel the firm to discontinue certain operations.
Some goods and services offered by TFL will be inaccessible to consumers in the US.
On Monday, the price of LUNA dropped 2.25 percent.
On Thursday, blockchain startup Terraform Labs said that it would limit access to some services and products for users in the United States. The move comes as the business prepares for a court ruling in its ongoing legal fight with the US Securities and Exchange Commission (SEC).
Users in the United States will be unable to access Terraform Labs.
A recent tweet on X announced that Terraform Labs is making modifications to its business. In certain regions, the company has announced changes to active liquidity provisioning and product access via Terraform Labs (TFL).
In 2022, the Terra ecosystem collapsed due to the LUNA-UST sibling coins and UST depegging, costing $40 billion. As a result, the SEC filed enforcement charges against Terraform Labs and its creator, Do Kwon, requesting a New York court to punish the company $5.3 billion.
A "conduct injunction," which would require TFL to stop part of its operations, is something the company has mentioned as a possible outcome. In anticipation of this, Terraform Labs will next week limit access to some products and services for customers in the United States.
According to TFL, the company is opposed to geoblocking but feels it has no other option in this situation. The corporation assured that open source initiatives like Alliance and the Terra blockchain will be unaffected by the changes.
To comply with the court's order, the company will also begin liquidating its holdings on April 26.
As of this writing, one LUNA is trading hands for $0.6345, representing a 2.25% decrease this week.
