Terra community to own chain after TFL wind-down; Coinbase exec slams SEC settlement Terra community to own chain after TFL wind-down; Coinbase exec slams SEC settlement
Amani said that certain teams and developers want to takeover the network and will announce their intent on the governance forums.
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Updated: Jun. 13, 2024 at 12:19 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Terraform Labs CEO Chris Amani said Terra will become a community project as the company winds down following a $4.5 billion SEC settlement.
Amani wrote on June 12 that the community must “take over ownership of the chain.” He said that certain teams and developers want to handle the project and will announce their intent on the forums.
Amani added that Terraform Labs “always intended to dissolve” and can now do so.
He said the company was “well positioned to accelerate” if it had won the SEC case but no longer can operate because it lost the trial.
Terraform Labs will continue to operate its products during the wind-down period.
The company will sell Pulsar Finance, a cross-chain portfolio manager it acquired in late 2023, and two other products, Station Protocol and Enterprise Protocol.
Additionally, Amani announced that TFL will post a proposal to burn all of its unvested Luna. The firm will also propose to burn any vested crypto that it holds in its wallets.
Coinbase CLO slams settlement
The settlement has attracted attention elsewhere in the industry. Coinbase CEO Paul Grewal criticized the case’s outcome and highlighted its benefits for the SEC.
Grewal said the outcome “just makes the SEC an unsecured creditor,” meaning the agency will receive funds through Terraform Labs’ bankruptcy case. He added that the firm orders Terra’s co-founder and former CEO Do Kwon to “hand over $7 million of assets.”
Grewal said:
“Itโs predictably on-brand … Thereโs zero meaningful relief to fraud victims. This is no way to regulate.”
Meanwhile, Messari CEO Ryan Selkis also denounced the settlement amount and said it should go to a victims’
The SEC’s unsecured creditor’s claim concerns the majority of the settlement amount. However, harmed investors will receive certain assets that Kwon transfers to the Liquidating Trust.
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Mike Dalton
Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada's West Coast.
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Terraform Labs
Terraform Labs is a startup that created Terra, a blockchain protocol and payment platform used for algorithmic stablecoins.
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
Messari
Messari is a fast growth startup in New York that is building the next generation data layer for the global cryptoasset community.
Paul Grewal is the Chief Legal Officer of Coinbase where he is responsible for Coinbaseโs legal, compliance, global intelligence, risk management and government relations groups.
Chris Amani is the new CEO of ย Terraform Labs, Terra and Luna creator.
Gary Gensler is an American government official and former investment banker who President Joseph Biden nominated to chair the U.S.
Ryan Selkis is the founder and CEO of Messari, a reliable data and market intelligence for crypto investors.
Do Kwon began his professional journey as an engineer, contributing to tech giants Apple and Microsoft.