Following a settlement with the U.S. Securities and Exchange Commission (SEC), Chris Amani, who succeeded Do Kwon as the CEO of Terraform Labs, disclosed that the blockchain firm is set to dissolve.
Terraform Labs Set to Close Doors Post-SEC Settlement
Blockchain startup Terraform Labs has announced it is ceasing operations following a settlement with the SEC. CEO Chris Amani released the statement on the social media platform X. With the settlement complete, Amani noted he could now discuss the future of Terraform Labs (TFL).
“TFL always intended to dissolve at some point and that point is now. We will be winding down operations completely,” Amani stated. “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 and ecosystem together and continue to build innovative products through all of this.”
The TFL leader added:
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.
Meanwhile, the Terra ecosystem persists to an extent, supported by several decentralized applications and its tokens. However, the cryptocurrency tokens originating from the Terra blockchain have declined in value significantly. LUNA 2.0, the replacement for LUNA, has plummeted by 97%. In the decentralized finance (defi) arena, Terra defi protocols currently secure a mere $5.37 million in value locked, placing the chain at the 107th position among the leading blockchains by value locked.
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