Terraform Labs (TFL), the company behind the Terra blockchain, is running into troubles of its own. Three key members of the Singapore-based company’s legal team have reportedly taken the exit following the recent price crash of Terra’s premier stablecoin, UST.
The legal team members include General Counsel Marc Goldich, Chief Corporate Counsel Lawrence Florio, and Chief Litigation and Regulatory Counsel Noah Axler. All three had been with the company for less than a year.
Another news outlet reported the departures, citing a person familiar with the matter and the LinkedIn pages of the team members. Per the report, TFL’s legal operations are now being handled by outside counsel.
A spokesperson for TFL, however, reassured that there was still confidence among the company’s personnel. The company still firmly believes that “Terra is more than UST,” so it can rebuild and revive the ecosystem.
“The past week has been challenging for Terraform Labs, and a small number of team members resigned in recent days. The vast majority of team members remain steadfastly committed to carrying out the project’s mission,” the spokesperson said.
The report has been met by mixed reactions from the broader digital currency community. The observers tie the legal team’s exit to the likely storm that will follow the price crash of both UST and LUNA. One observer on Twitter chimed in, saying:
“The legal team of Terraform labs might have seen something they can’t handle so they resigned… Do Kwon made people lose a lot of money and not everyone will let it go.”
The legal team of Terraform labs might have seen something they can't handle so they resigned. Terraform lawyers Marc Goldich, Lawrence Florio,and Noah Axler has already updated their resignation on LinkedIn. Do Kwon made people lose a lot of money and not everyone will let it go
— Tajo Crypto (@TajoCrypto) May 17, 2022
The opinion is not unfounded, as reports indicate that the government of South Korea, where the TFL CEO, Do Kwon, is from, has opened a probe into the events surrounding the crash.
Rebuilding plans include Terra blockchain split
Before the de-pegging, Terra USD (UST) was the biggest algorithmic stablecoin by issuance in the digital currency industry. From a market cap of over $12 billion, UST now has a market cap of around $1 billion and is changing hands at around $0.09 instead of $1.
The price of LUNA, the Terra blockchain’s native token, which is used to back UST, also tanked in the “death spiral.” LUNA is changing hands at around $0.000179, a far cry from its all-time high of $119 reached just last month.
Other plans to remedy the situation have proven futile. The embattled Kwon has announced a proposal to split the Terra blockchain. The new blockchain will simply be called Terra and have the token LUNA. The current blockchain will be renamed Terra Classic with a LUNAC token.
12/ The Terra community is my family.
I will always be here, no matter how hard it gets.
Let's build it back up again – together.
— Do Kwon 🌕 (@stablekwon) May 16, 2022
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