Terraform Labs’ in-house legal department reportedly quit shortly after the so-called algorithmic stablecoin UST’s implosion wreaked havoc on crypto markets.
Team members leaving the company
The legal operations are now managed by outside lawyers, according to a recent story by The Block. The LinkedIn profiles of Terraform Labs’ general counsel Marc Goldich, chief litigation and regulatory counsel Noah Axler, and chief corporate counsel Lawrence Florio reveal that the three left the company in May after less than a year on the job.
An anonymous spokesperson for the company said that the past week has been challenging for the company, with some of the team members resigning in recent days. He went on to state:
“The vast majority of team members remain steadfastly committed to carrying out the project’s mission. Terra is more than UST, with an incredibly passionate community and a clear vision of how to rebuild. Our focus is now on executing our plan to revive the Terra ecosystem.”
Devastating week for Terraform Labs
Notably, the resignation news came after a devastating week for Terraform Labs and its community. The Do Kwon and Daniel Shin-founded Terraform Labs powers Terra Blockchain. Terra’s UST, the third-largest stablecoin by the issuance, failed to perform as expected, causing its investors’ assets to burn to ashes.
In a frantic attempt to bring back the peg, billions of dollars in bitcoin were sold, and Terra’s native currency, LUNA, was created in a huge amount, but it was too late for these measures to solve the problem. On the other hand, LUNA fell by more than 99% last week, after which Luna Foundation Guard decided to compensate its holders with token airdrops.
On Tuesday, Kwon suggested a path forward for its community. His team is planning on forking Terra to create a new blockchain without the UST and aims to make LUNA the new chain’s cryptocurrency.
1/ Terra is more than $UST
— Do Kwon 🌕 (@stablekwon) May 16, 2022