Terraform Labs, the developer of the Terra network, is set to dissolve after reaching a $4.47 billion settlement with the US Securities and Exchange Commission (SEC). The company’s CEO, Chris Amani, announced the decision in a post to X (formerly Twitter) on Thursday.
Amani said that the company had always planned to dissolve eventually, with the settlement news providing the perfect time. Moreover, he shared that the company would be selling the projects in the Terra ecosystem as the firm begins “winding down operations completely.”
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Terraform Labs Officially Dissolves, Says CEO
In 2022, Terraform Labs was the center of controversy in the cryptocurrency space. The blockchain’s algorithmic Terra UST stablecoin had collapsed in what was a massive blow to the market. Subsequently, that started a plethora of legal woes for the company.
Now, Terraform Labs has announced that it will dissolve as news of a $4 billion SEC settlement was made public this week. Amani called on the community to “take over ownership of the chain.” While stating that some developers have emerged with interest, and some more information coming soon.
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Amani also announced a new proposal that would burn all of Terraform’s unvested Luna. The native token of the blockchain, the CEO stated that any remaining “vested in our wallets will be burned by TFL.” The decision will ensure that Terraform is finished with the Luna token entirely.
A point of interest in the statement was Amani’s recognition that the company had another course charted if things had gone differently. Specifically, he revealed the firm was “well positioned to accelerate” if they had won the trial. However, the defeat has left Terraform with no choice but to cease operations.