Terraform Labs to Cease Operations and Transfer Network Control to Community

Chris Amani, CEO of Terraform Labs (TFL), has called upon the community to take control of the Terra blockchain as the organization plans to dissolve. 

2/ TFL always intended to dissolve at some point and that point is now. We will be winding down operations completely. Special thanks to the lunatics who supported us through this process and thanks to the TFL team. I’m incredibly proud that we were able to hold this company…

— Chris Amani | Terra (@fleece_cannon) June 12, 2024

“TFL always intended to dissolve at some point and that point is now. We will be winding down operations completely. Special thanks to the lunatics who supported us, as well as the company team. I’m incredibly proud that we were able to maintain the company and ecosystem […], despite everything,” the post reads.

Amani’s post followed the firm’s agreement with the U.S. Securities and Exchange Commission, which involves a payment of $4.47 billion. The document awaits judicial approval.

According to the TFL CEO, the company plans to sell its projects within the Terra ecosystem, including Pulsar Finance, Station Wallet, and Enterprise DAO.

There will also be a proposal to burn all locked LUNA tokens intended for Terraform Labs. The team will independently destroy the coins already available to them.

“The community will need to take over the network management. I believe there are several teams and developers eager to do so, and you will soon see information on the forums,” Amani noted. 

He added that he intends to oversee the dissolution of TFL and the transfer of powers until the very end.  

On April 5, a jury in the Southern District of New York found Terraform Labs and its co-founder Do Kwon guilty of deceiving investors and securities fraud. The trial lasted nine days and was held in absentia. 

In South Korea, Kwon faces numerous charges, including violations of capital markets law. 

Earlier, it was reported that he was released from prison in Montenegro after serving a sentence for attempting to cross the border with forged documents.