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Tuesday, November 29, 2022

Terraform Labs’ Team Quits After Crypto Market Meltdown

Terraform Labs’ in-house legal staff left immediately after the failure of Terra’s algorithmic stablecoin wreaked havoc on cryptocurrency markets.

Legal activities are now being handled by outside counsel, according to a source familiar with the situation.

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Terraform Labs’ chief advisor Marc Goldich, chief corporate advisor Lawrence Florio, and chief legal and regulatory advisor Noah Axler all left the firm in May after less than a year on the job, according to their LinkedIn accounts. The resignations come after a difficult week for Terraform Labs, located in Singapore, and the blockchain it manages. 

Terraform Labs Made Several Mistakes

The Terra blockchain is powered by Terraform Labs, which was created by Do Kwon and Daniel Shin in 2018. Terra’s UST, the issuance’s third-largest stablecoin, has de-pegged substantially from its goal price of $1. In a desperate attempt to re-establish the peg, billions of dollars in BTC were sold, and enormous numbers of Terra’s native currency LUNA were created, but to no effect.

Both LUNA and UST saw their prices plummet. Terra’s blockchain has been shut down twice, resulting in significant losses for investors.

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Kwon has been supporting a proposal to fork Terra to build a new blockchain in the aftermath of last week’s upheaval, but the community appears to be opposed to the notion. Goldich, Florio, and Axler were approached for comment but did not answer by the time of publication. Following the Terra breakdown last week, Terraform Labs founder and CEO Do Kwon and co-founder Daniel Shin may face litigation and property seizures. Several LKB workers will join the case after Terra’s algorithmic stablecoin (UST) and LUNA governance token dropped over $40 billion in value last week.

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