United

Terra Classic

Terra

Billion

Terraform Labs plans to shut down its operations following a settlement with the U.S. Securities and Exchange Commission (SEC). According to a <a href="https://x.com/fleece_cannon/status/1800962168659247432">post on X</a>, CEO Chris Amani announced that the firm plans to dissolve, selling off its projects within the Terra ecosystem, including Pulsar Finance, Station Wallet, and Enterprise DAO. 
<h2 id="b-terraform-labs-prepares-a-community-proposal-b">Terraform Labs Prepares a Community Proposal</h2> 
This decision comes after a tumultuous period for Terraform Labs, marked by regulatory scrutiny and market challenges. Despite the company’s dissolution, Amani has emphasized that the Terra and Terra Classic blockchains have the potential to continue under community control. This suggests that while Terraform Labs will no longer be at the helm, the underlying technology and its associated projects could thrive if the community takes the reins. 
<blockquote class="twitter-tweet"> 
 2/ TFL always intended to dissolve at some point and that point is now. We will be winding down operations completely. Special thanks to the lunatics who supported us through this process and thanks to the TFL team. I’m incredibly proud that we were able to hold this company… 
 — Chris Amani | Terra (@fleece_cannon) <a href="https://twitter.com/fleece_cannon/status/1800962168659247432?ref_src=twsrc%5Etfw">June 12, 2024</a>
</blockquote> 
Additionally, the company is preparing a community proposal to incinerate all unvested Luna, the native token of Terraform. Amani stated that any remaining tokens vested in wallets will be burned by Terraform Labs, demonstrating a firm commitment to sever the company’s direct ties to the token. 
This move underscores the broader trend of regulatory pressures shaping the crypto industry’s landscape. As Terraform Labs prepares to close this chapter, the future of Terra and Terra Classic lies in the hands of its community, presenting a new era of decentralized management and potential growth for the ecosystem. 
<h2 id="b-sec-seeks-billion-in-penalties-from-terraform-labs-b">SEC Seeks Billion in Penalties From Terraform Labs</h2> 
In April, the <a href="https://thecoinrise.com/sec-seeks-billions-in-penalties-from-terraform-labs-and-do-kwon/">US SEC filed a motion requesting billions of dollars in disgorgement </a>and civil penalties against Terraform Labs and its co-founder, Do Kwon, following a verdict in its civil case.&nbsp; 
In a filing in the United States District Court for the Southern District of New York, the SEC requested approximately $4.7 billion in disgorgement and pre-judgment interest after the civil case ruling, along with a combined $520 million in civil penalties: $420 million from Terraform and $100 million from Do Kwon.&nbsp; 
In addition to the monetary judgment, the SEC was proposed to bar Kwon from serving as an officer or director of a securities issuer and providing complete details of his accounts and assets. Terraform would also face a conduct-based injunction to prevent engaging in behavior similar to the fraud that occurred. However, the proposed remedies and civil judgment are pending approval by a judge. 
<h2 id="b-terraform-labs-filed-for-chapter-11-bankruptcy-b">Terraform Labs Filed for Chapter 11 Bankruptcy</h2> 
Recall that the disgraced crypto entrepreneur Do Kwon and his firm were held responsible for the now defunct stablecoin TerraUSD (UST) collapse, causing turbulence in the crypto market. To everyone’s surprise, the <a href="https://thecoinrise.com/terraform-labs-officially-files-for-chapter-11-bankruptcy/">firm filed for bankruptcy protection in the United States</a>, early this year.&nbsp; 
The bankruptcy was filed four days after the U.S. <a href="https://thecoinrise.com/terra-lawyers-file-motion-to-dismiss-case-against-do-kwon/">SEC agreed to postpone Do Kwon’s upcoming trial</a>. In February 2023, the two parties were accused of running a multi-billion dollar cryptocurrency fraud involving the UST and Terra (LUNA). 
The post <a href="https://thecoinrise.com/terraform-labs-mulling-shutting-down-post-sec-settlement/">Terraform Labs Mulling Shutting Down Post-SEC Settlement</a> appeared first on <a href="https://thecoinrise.com">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Terraform Labs Mulling Shutting Down Post-SEC Settlement

Table of Contents

TheCoinrise Media

Other articles published on Jun 13, 2024

Binance Partners with Macao Judiciary Police To Strengthen Law Enforcement

Crypto Regulations in Vietnam 2024

Cardano's Charles Hoskinson Reacts to Elon Musk's Latest Achievement

Solana Prices Rally in 2023

XRP faces decline: What the drop below 20-day EMA means for traders

This Shiba Inu (SHIB) Rival to Be Supported by Coinbase

Join our free newsletter for daily crypto updates!