The crisis is growing: Terraform Labs has terminated its activities!

Chris Amani, CEO of Terraform Labs, terra‘s developer has asked the community to take the reins as the company plans to cease operations.

According to Terraform Labs CEO Chris Amani, the company plans to sell its projects in the Terra ecosystem, including Pulsar Finance, Station Wallet and Enterprise DAO. This development follows Terraform’s massive $4.47 billion settlement with the US Securities and Exchange Board regarding the UST algorithmic stablecoin, which dramatically collapsed in 2022.

Amani signaled the end of Terraform Labs at “We will terminate operations completely.” said

Terraform CEO expressed his concern for LUNA

Amani stated that the firm is planning a community offering with the entire burning of Terraform’s native token, Luna. “Anything left in our wallets will be burned by TFL,” he confirmed, pledging to put a definitive end to the company’s direct involvement with the token.

He stated that the Terra and Terra Classic blockchains can continue under community control. “The community will need to take over ownership of the chain,” says Amani, proposing a community-led governance model that could redefine how blockchain projects operate post-crisis.

SEC, first accused Terraform and its co-founder Do Kwon in February 2023 of misleading investors and violating federal securities provisions by engaging in fraudulent activities related to the sale of unregistered securities.

The offer that Terraform announced with the SEC on Wednesday includes $3.58 billion in compensation and a $420 million fine. In addition, Kwon is prohibited from serving as a manager or executive in any public company. Additionally, Do Kwon is required to contribute approximately $204 million to Terraform’s bankruptcy estate to compensate investors harmed by the plan.

Amani, Terraform’s former COO, took over the mission from Kwon in July 2023. Terraform filed for Chapter 11 bankruptcy in Delaware court in January.