United

Terra Classic

Terra

Axie Infinity

Chris Amani, CEO of Terraform Labs, has announced that the firm will cease operations following a $4.47 billion settlement with the United States Securities and Exchange Commission.&nbsp;
The company plans to sell key projects within the Terra ecosystem and give the community control of the Terra&nbsp;blockchain.
<blockquote data-ct-non-breakable="true">
 “[Terraform Labs] always intended to dissolve at some point and that point is now. We will be winding down operations completely. [...] We were well positioned to accelerate things if we had won the trial, but unfortunately, we lost and as a result, can no longer operate.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-06/dc855b81-cb36-4c66-9b90-076de1c5b120.png" alt="" title="">
 <figcaption style="text-align: center;">
 Source: <a href="https://x.com/fleece_cannon/status/1800962166956421338" target="_blank" rel="noopener nofollow">Chris Amani</a>
 </figcaption>
</figure>
Related:&nbsp;<a href="https://cointelegraph.com/news/terraform-fine-resolve-sec-civil-lawsuit">Terraform to pay $4.47B to resolve SEC civil lawsuit</a>
<h2 data-ct-non-breakable="true" id="decision-to-dissolve">Decision to dissolve</h2>
Terraform Lab’s decision to dissolve follows its $4.47 billion settlement with the SEC regarding the historic collapse of the algorithmic stablecoin TerraUSD (UST) in 2022.
The settlement includes a substantial $3.58 billion disgorgement — giving up profits obtained illegally or unethically — and a civil penalty of $420 million.
Having taken over from Do Kwon in July 2023, Amani confirmed the firm’s intent to wind down operations and burn unvested and vested holdings.
<blockquote data-ct-non-breakable="true">
 “@evan_docs will shortly post a community proposal to burn all of [Terraform Labs] unvested Luna. Anything that remains vested in our wallets will be burned by [Terraform Labs].”
</blockquote>
Related: <a href="https://cointelegraph.com/news/terraform-do-kwon-fraud-settlement-sec">Terraform, Do Kwon to reach fraud settlement with SEC</a>
<h3 data-ct-non-breakable="true" id="community-to-take-the-reins">Community to take the reins&nbsp;</h3>
Amani also highlighted plans for a community proposal to burn remaining vested tokens and the need for community-led governance of the Terra and Terra Classic blockchains.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-06/3e983b31-c4b7-4f49-8c4d-0751b5401eb9.png" alt="" title="">
 <figcaption style="text-align: center;">
 Source: <a href="https://x.com/fleece_cannon/status/1800962173084328226" target="_blank" rel="noopener nofollow">Chris Amani</a>
 </figcaption>
</figure>
The decision to hand the reins to the community elicited mixed reactions from the community — some expressing optimism, others critiquing past leadership.
While most supported the community shift toward Terra Classic, one community member’s response to Amani’s X post starkly critiqued the decision.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-06/18641792-188e-43df-b46d-d77a1e77857f.png" alt="" title="">
 <figcaption style="text-align: center;">
 Source:&nbsp;<a href="https://x.com/RedlineDrifter/status/1801015350751793565" target="_blank" rel="noopener nofollow">RedlineDrifter</a>
 </figcaption>
</figure>
Related: <a href="https://cointelegraph.com/news/do-kwon-montenegro-justice-minister-sec">Montenegrin Justice Minister discussed Do Kwon’s case with SEC</a>
<h3 data-ct-non-breakable="true" id="market-and-regulatory-implications">Market and regulatory implications&nbsp;</h3>
Terraform Labs’ decision to dissolve has resulted in the prices of LUNA (<a href="https://cointelegraph.com/terra-price-index">LUNA</a>) and LUNC <a href="https://coinmarketcap.com/currencies/terra-luna-v2/" target="_blank" rel="noopener nofollow">falling</a> by 5% and 2% within the last 24 hours.
The $4.47 billion SEC settlement sets a significant regulatory precedent for actions taken in the crypto space and highlights to push for regulatory compliance and governance.
Magazine: <a href="https://cointelegraph.com/magazine/socialfi-gaming-revenue-sky-mavis-discord-metarun-review-web3-gamer/">SocialFi boosts game revenue, Axie Infinity creator wants to ditch Discord: Web3 Gamer</a>

Terraform Labs to end operations, Terra community will take over

Table of Contents

Cointelegraph

Other articles published on Jun 13, 2024

Is The Crypto Surge Over? Bitcoin Stalls At $72,000 As Investor Enthusiasm Wanes

Cryptocurrency LEO Token Down More Than 5% Within 24 hours

Russia-Linked Crypto Addresses May Face US Market Lockout

Telegram’s Toncoin Blockchain Outperforms Ethereum In Daily Active Addresses!

Orexbot by Avenix Fzco: Elevating XAUUSD Trading with Advanced Algorithms

Unsure of BitBot and Arweave? Check Top Crypto Presale in June 2024 with MoonBag’s Midway Success

Join our free newsletter for daily crypto updates!