After the news that Terra blockchain developer Terraform Labs agreed to settle with the U.S. Securities and Exchange Commission (SEC) became public, Terraform Labs CEO Chris Amani announced plans to dissolve the company on Thursday (13th) and asked the community to take over Terra. network. The company also plans to sell off several of its projects in the Terra ecosystem.
The algorithmic stablecoin UST of the Terra ecosystem suffered a serious de-anchoring event in May 2022, which led to the collapse of the Terra chain and the 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. Terraform Labs has agreed to settle with the SEC and will pay a $4.47 billion fine, according to court filings.
"TFL (Terraform Labs) has always intended to dissolve at some point, and now is that moment, we will completely wind down operations." Amani said on the X platform: "If we won the trial, we could have accelerated the progress of things, but Unfortunately we lost and therefore can no longer operate."
Amani said 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 this, and you should see relevant information on the forum soon."
Amani also stated that Terraform Labs plans to destroy all unvested LUNA through community proposals. "Any remaining vested assets in our wallet 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, which it expects will continue to operate after the company is dissolved.
Chris Amani, formerly Terraform's chief operating officer, will succeed Kwon as CEO in July 2023. Terraform filed for bankruptcy protection in a Delaware court in January this year.
References: The Block, Chris Amani tweets
This article The CEO of Terraform Labs announced that the company will be dissolved and the community will take over the Terra Blockchain. It first appeared on Zombit.