2024

Terra

<p class="is-style-lead">Terraform Labs plans to dissolve, leaving the Terraform community to monitor the blockchain ecosystem.&nbsp;</p> 
<p>In the wake of a <a href="https://crypto.news/terraform-labs-to-settle-sec-case-for-4-47b/" data-type="link" data-id="https://crypto.news/terraform-labs-to-settle-sec-case-for-4-47b/" target="_blank" rel="">$4.47 billion settlement</a> with the SEC, Terraform Labs has announced plans to dissolve, leaving the blockchain’s future in the hands of the Terraform community.&nbsp;</p> 
<p>“TFL always intended to dissolve at some point, and that point is now,” CEO Chris Amani <a href="https://x.com/fleece_cannon/status/1800962168659247432" target="_blank" rel="">posted</a> on X. “We will be winding down operations completely.”</p> 
<p>As part of its dissolution plan, the company plans to sell its projects within the Terra ecosystem, which includes Pulsar Finance, Station Wallet, and Enterprise DAO.</p> 
<p>For some, the SEC’s settlement with Terraform is facing scrutiny as it leaves fraud victims with zero meaningful relief.&nbsp;</p> 
<p>“It’s predictably on-brand to tout a settlement with Kwon and the now-bankrupt Terraform totaling $4.7 billion,” <a href="https://x.com/iampaulgrewal" target="_blank" rel="">posted</a> Paul Grewal, CLO at Coinbase. “But the settlement just makes the SEC an unsecured creditor in the BK and only orders Kwon to hand over $7 million of assets he actually has. There’s zero meaningful relief to fraud victims.”</p> 
<h2 class="wp-block-heading" id="community-oversight">Community oversight</h2> 
<p>Amani also posted: “the community will need to take over ownership of the chain. I believe there are a couple of teams and devs who want to do this, and you should be seeing information in the forums soon.”&nbsp;</p> 
<p>This community oversight of a blockchain is unprecedented but is not out of the realm of possibility. The Terra ecosystem is still operating through the use of various decentralized applications and tokens.&nbsp;</p> 
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   <p lang="en" dir="ltr"><a href="https://twitter.com/search?q=%24LUNA&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="">$LUNA</a> has one of the most wholesome tokenholder distributions you'll find anywhere in crypto<br><br>that's the one thing that truly sets it apart<br><br>I have hopes</p>— Will Chen (@stablechen) <a href="https://twitter.com/stablechen/status/1801091962176778600?ref_src=twsrc%5Etfw" target="_blank" rel="">June 13, 2024</a>
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<p>Terra blockchain tokens have experienced a significant decrease in value. LUNA 2.0, the successor to LUNA, has decreased in value by 97%.&nbsp;</p> 
<h2 class="wp-block-heading" id="sec-settlement">SEC settlement&nbsp;</h2> 
<p>According to <a href="https://storage.courtlistener.com/recap/gov.uscourts.nysd.594150/gov.uscourts.nysd.594150.272.0.pdf" target="_blank" rel="">court filings</a> from June 12, Terraform Labs <a href="https://crypto.news/terraform-labs-to-settle-sec-case-for-4-47b/" rel="">reached</a> a $4.47 billion settlement with the SEC related to the implosion of TerraLuna (<a href="https://crypto.news/price/terra-luna-classic/" rel="">LUNC</a>) and TerraUSD (UST).</p> 
<p>The SEC prosecutors’ proposed penalty came after a two-week trial in March and a preliminary deal revealed at the end of last month. A jury found both Terraform and its founder, <a href="https://crypto.news/sec-assents-to-do-kwon-terra-trial-delay-until-april-15/" target="_blank" data-type="link" data-id="https://crypto.news/sec-assents-to-do-kwon-terra-trial-delay-until-april-15/" rel="">Do Kwon,</a> legally accountable for the company’s 2022 crash. Amani, who previously served as Terraform’s COO, assumed the position in July 2023, succeeding Kwon.</p> 
<p>The agreement needs to be approved by a judge in New York and could become one of the largest settlements between a cryptocurrency company and a U.S. regulatory body. Originally, the SEC had requested $5.3 billion in fines from the involved parties.</p> 
<p>This fine is higher than the fine the U.S. Justice Department levied on crypto exchange Binance. Terraform <a href="https://crypto.news/what-is-happening-around-terraform-labs-and-do-kwon-now/" rel="">filed</a> for Chapter 11 bankruptcy in a Delaware court in January.</p>

Terraform to dissolve following $4.47b settlement with SEC

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