Terraform Labs has announced plans to dissolve its operations. Chris Amani, CEO of Terraform Labs, has call on the community to step forward and assume leadership as the firm navigates its dissolution.
According to Amani, Terraform Labs intends to divest its projects within the Terra ecosystem, including prominent entities like Pulsar Finance, Station Wallet, and Enterprise DAO. This strategic move comes in the wake of a monumental $4.47 billion settlement reached between Terraform Labs and the US Securities and Exchange Commission (SEC).
“TFL has always had a trajectory toward dissolution, and that time is now,” stated Amani during an address on X, signaling the impending closure of Terraform Labs. “We are embarking on a complete winding down of operations.”
Amani outlined plans for a community-driven proposal aimed at burning all unvested Luna, the native token of Terraform, emphasizing the firm’s commitment to severing direct ties with the token.
Additionally, he expressed confidence in the potential for the Terra and Terra Classic blockchains to persist under community stewardship, suggesting a shift towards a governance model led by the community, which could redefine the landscape of blockchain projects in the aftermath of crises.
The SEC’s initial charges against Terraform and its co-founder, Do Kwon, were levied in February 2023, alleging misleading investor practices and violations of federal securities laws through the sale of unregistered securities.
The proposed settlement, unveiled recently, encompasses a staggering $3.58 billion in disgorgement, coupled with a $420 million civil penalty.
