Terraform Labs’ In-house Legal Team Resigns Amid UST Crumble

Terraform Labs’ in-house legal team has resigned after the collapse of Terra’s algorithmic stablecoin, which had a huge impact on wider crypto market.

The Block’s sources say that Terraform Labs’ legal operations are now being handled by outside counsel.

According to the LinkedIn profiles of Terraform Labs’ general counsel Marc Goldich, chief corporate counsel Lawrence Florio, and chief litigation and regulatory counsel Noah Axler show that all three stopped working for the company in May.

Terraform Labs’ spokesperson commented:

“The past week has been challenging for Terraform Labs, and a small number of team members resigned in recent days. 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 on how to rebuild. Our focus is now on executing our plan to revive the Terra ecosystem.”

Terraform Labs, founded by Do Kwon and Daniel Shin in 2018, is the company behind the Terra blockchain and its ecosystem. Terra’s UST, was the third largest stablecoin by issuance, before it de-pegged sharply from its target price of $1 early last week. Billions of dollars worth Bitcoin were sold and unprecedented volumes of Terra’s native currency LUNA issued in a frantic attempt to restore the peg – without success.

The value of both LUNA and UST collapsed. Terra twice halted its blockchain and investors have taken massive losses.

In the aftermath of the collapse, Kwon has proposed new a plan to fork Terra to create a new blockchain — but the community seems not to agree.