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<div class="intro-text">
 Terraform Labs CEO Chris Amani has said that the company will wind down operations following the settlement of a significant securities fraud case with the U.S. Securities and Exchange Commission (SEC).
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 Amani made this statement in a recent<a style="color: #0000ff;" href="https://x.com/fleece_cannon/status/1800962166956421338?t=U13ksi90cFeabqnS0e7S2g&amp;s=19" rel="noopener noreferrer nofollow"> social media post</a> while expressing gratitude to the supporters.&nbsp;
Amani also<a style="color: #0000ff;" href="https://x.com/fleece_cannon/status/1800962166956421338?t=U13ksi90cFeabqnS0e7S2g&amp;s=19" rel="noopener noreferrer nofollow"> outline</a>d the plans for the future of the Terra ecosystem following the resolution of its legal dispute. He noted that the company would soon post a community proposal to burn all unvested Luna tokens. 
<blockquote>
 “Anything that remains vested in our wallets will be burned by TFL,” 
</blockquote>
he wrote.&nbsp;
Whether this dramatic reduction in supply will positively impact the long-term viability of $LUNA and $LU1NC remains uncertain.
Though the company is shutting down, Amani suggested that the Terra ecosystem might<a style="color: #0000ff;" href="https://x.com/fleece_cannon/status/1800962177324478542?t=odbHN6iUjasXRlCBac8JNQ&amp;s=19" rel="noopener noreferrer nofollow"> continue</a> under community leadership. He called for community members to take over the ownership of the blockchain, hinting that several teams and developers are interested in assuming control. 
<blockquote>
 “The community will need to take over ownership of the chain. I believe there are a couple teams and devs who want to do this and you should be seeing information in the forums soon,“
</blockquote>
 he added.
Terraform Labs’ legal troubles<a style="color: #0000ff;" href="https://defi-planet.com/2024/05/terraform-labs-challenges-secs-5-3-billion-fine-proposes-a-1-million-penalty/" rel="noopener noreferrer nofollow"> began</a> with the collapse of its algorithmic stablecoin, Terra USD (UST), in 2022, which led to catastrophic investor losses.
Following this incident, the SEC charged Terraform and its co-founder, Do Kwon, accusing both entities of conducting unregistered transactions and committing securities fraud.
The SEC’s proposed<a style="color: #0000ff;" href="https://www.bloomberg.com/news/articles/2024-06-12/terraform-agrees-to-pay-4-47-billion-penalty-in-sec-case" rel="noopener noreferrer nofollow"> final consent</a> judgment, filed with the U.S. District Court for the Southern District of New York, includes $3.58 billion in disgorgement and $420 million in civil penalties. It also bars Kwon from serving as an officer or director of any public company.&nbsp;&nbsp;
In the recent court filing, the regulator emphasized that the judgement aims to provide meaningful recovery for investors and serve as a deterrent against future misconduct in the crypto industry.
Terraform Labs initially challenged the SEC’s proposed $5.3 billion fine, seeking to reduce it to $1 million, but eventually reached a settlement.
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The post <a href="https://defi-planet.com/2024/06/terraform-labs-to-wind-down-after-settling-4-47-billion-fraud-case-with-sec-ceo-announces/" rel="noopener noreferrer nofollow">Terraform Labs to Wind Down After Settling $4.47 Billion Fraud Case with SEC, CEO Announces</a> appeared first on <a href="https://defi-planet.com" rel="noopener noreferrer nofollow">DeFi Planet</a>.

Terraform Labs to Wind Down After Settling $4.47 Billion Fraud Case with SEC, CEO Announces

DeFi Planet

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