Terraform Labs’ in-house lawyers began to leave

Some Twitter users are calling for legal action against the company’s head

18.05.2022 - 06:40

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2 min

What’s new? Terraform Labs’ in-house lawyers have begun to leave the company. According to profiles on LinkedIn, Terra’s general counsel Marc Goldich, chief litigation and regulatory counsel Noah Axler, and chief corporate counsel Lawrence Florio left in May 2022. Concerned Twitter users are calling for Terraform Labs co-founder Do Kwon to be sued. Some speculate that the lawyers left the company because of concerns about their future salaries.

Damn .. You are wiping everything happened and starting from scratch. Terra 2.0 will bring you legal consequences. Ask your lawyer before doing that & take care @stablekwon— Fez (@FezMakk) May 17, 2022

What happened before? The UST stablecoin rate started to decline on May 8, after losing its peg to the US dollar. The price of its backing token LUNA also fell to almost zero. As of May 18, 9:30 Moscow time, UST is trading at $0,05, while LUNA is trading at $0,00018 (according to Binance).

South Korean authorities called on Do Kwon to explain the reasons for the collapse of LUNA and UST rates in parliamentary hearings, where measures to protect investors would be developed.

On May 16, Do Kwon offered to the community to conduct a hard fork of the network, but this initiative was rejected by users as a result of a preliminary vote. Kwon previously proposed to restore the Terra ecosystem by restarting the network with 1 billion tokens airdropped to LUNA and UST holders, as well as a community pool to fund future development.

The Luna Foundation Guard (LFG), a non-profit organization, sold $2,3 billion worth of bitcoins to support UST. Developers would use the remaining assets to compensate investors.

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