Critical Decision After Terra and SEC Agreement: Shutting Down!

The Terra ecosystem faces recovery challenges following the market crash in 2022. Following this, he continued his efforts with branding efforts. Recently, Terraform Labs made a settlement with the SEC that included a penalty of $ 4.47 billion. The SEC settlement affected Terraform Labs’ trading activities. Therefore, Terraform Labs ceased operations and handed over control of the Terra Blockchain to the community.

Terraform Labs is ending its activities: It will be handed over to the community!

cryptokoin.com As you follow from , Terra recently reached an agreement with the US SEC. Within the framework of this agreement, it agreed to pay a penalty of $4.47 billion. Following the agreement, Terraform Labs CEO Chris Amani announced that the company would cease its operations. The company plans to sell valuable projects in the Terra ecosystem and give control of the Terra Blockchain to the community. In this context, Amani made the following statements in a series of posts:

Terraform Labs has always intended to disband at some point, and that point is now. We will cease our operations altogether […] If we had won the case, we would have been in a good position to speed things up, but unfortunately we lost and as a result we will no longer be able to operate.

Termination decision of Terraform Labs

Terraform Lab’s termination decision followed the $4.47 billion settlement with the SEC regarding the historic collapse of the algorithmic stablecoin UST in 2022. The agreement includes a significant disgorgement of $3.58 billion and a civil penalty of $420 million. Disgorgement means giving up profits obtained through illegal or unethical means. Amani, who took over from Do Kwon in July 2023, confirmed his intention to terminate the firm’s operations. He also announced his decision to burn unearned and vested assets. In this regard, Terra manager said:

Evan_docs will soon be releasing a community proposal to burn all Terraform Labs undeserved Luna. Anything left in our wallets that is deserved will be burned by Terraform Labs.

terra t community ğu will take the reins

Additionally, Chris Amani highlighted plans for a community proposal to burn remaining earned tokens and the need for community-led governance of the Terra and Terra Classic (LUNC) Blockchain.

The decision to hand over the reins to the community sparked mixed reactions in the community. While some spoke of optimism, others criticized the past leadership. Multiple people support the community’s transition to LUNC. However, a community member harshly criticized the decision in a reply to Amani’s X post.

Market performance of Terra ecosystem tokens

Terraform Labs’ liquidation decision affected LUNA and LUNC prices. Tokens were on the rise following the SEC consensus. However, it entered a downward spiral with the liquidation decision. LUNA and LUNC saw a decrease of 5.5% and 4.12% in the last 24 hours. The SEC memorandum sets a valuable regulatory precedent for actions taken in the crypto space. It also highlights the SEC’s push for regulatory harmony and governance.