In response to a staggering $4.47 billion settlement with the US Securities and Exchange Commission (SEC), Terraform Labs has announced its decision to dissolve operations. Chris Amani, CEO of Terraform Labs, has urged the community to assume leadership responsibilities as the company navigates this transition.
Amani revealed that Terraform Labs plans to divest its projects within the Terra ecosystem, including prominent entities such as Pulsar Finance, Station Wallet, and Enterprise DAO. This strategic move follows the monumental settlement reached with the SEC, marking the closure of Terraform Labs.
“TFL has always had a trajectory toward dissolution, and that time is now.” He outlined plans for a complete winding down of operations, signaling a pivotal moment in Terraform Labs’ journey.
The settlement agreement, pending judicial approval, also imposes significant restrictions on Terraform Labs and its former CEO, Do Kwon, prohibiting them from engaging in the purchase or sale of crypto asset securities.
Terraform Labs and Kwon have agreed to a combined disgorgement and civil penalties totaling $4.5 billion.
Lawyers representing the SEC have urged US District Court Judge Jed Rakoff of the Southern District of New York to approve the settlement agreement, highlighting its deterrent message to those involved in fraudulent activities within the crypto space.
