Just In: Terraform Labs To Cease Operations After SEC Settlement
After settling its civil fraud suit with the U.S. Securities and Exchange Commission (SEC) on June 12, Terraform Labs, the blockchain protocol created by Do Kwon, announced it will cease operations on Thursday.
In a series of X posts, the company’s current CEO, Chris Amani, stated that Terraform always intended to dissolve and is now closing operations completely.
According to Amani, what remains of the now bankrupt crypto company will be sold to digital asset portfolio manager Pulsar Finance, wen3 interface Station Wallet, and DAO management firm Enterprise Protocol.
1/ With the proposed settlement now public, i can finally share some details about what is next for TFL.
— Chris Amani | Terra (@fleece_cannon) June 12, 2024
“I’m incredibly proud that we were able to hold this company and ecosystem together and continue to build innovative products through all of this,” Amani wrote. “We were well positioned to accelerate things if we had won the trial, but unfortunately we lost and as a result, can no longer operate.”
The SEC’s $4.5 billion fine against Kwon and his now disgraced Terraform Labs, announced Wednesday, is considerably less than the $5.3 billion originally sought by the federal regulator in April.
Lawyers for Kwon pushed back against the SEC’s original request and argued that Kwon should only face a maximum penalty of $1 million despite costing $40 billion to be wiped from the crypto market.
“If approved, the proposed judgement will send an unmistakable deterrent message to not only those who engage in brazen misconduct, but also to all those who seek to evade the requirements of the federal securities laws by crafting new standards of behavior for crypto assets that fall under the purview of federal securities
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