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Terraform Labs has announced its withdrawal from the American market

Bits.media / 26.04.2024 / 15:38
Terraform Labs has announced its withdrawal from the American market
Terraform Labs has announced a decision dictated by the verdict of the court on the claim of the U.S. Securities and Exchange Commission (SEC). American customers will lose access to the company's products, including providing liquidity.

Terraform Labs (TFL) has notified that it is restricting access to products, as it expects to receive an injunction against activities in the United States of America in the near future.

"TFL is fundamentally opposed to geo—blocking, but in the circumstances we have no choice," the appeal says. 

Terraform Labs has been withdrawing liquidity from three projects since April 26: Astroport, White Whale and Ura. Representatives of the company apologized to customers, promising to inform them about further actions.

On April 5, 2024, a New York court found Terraform Labs and its co-founder Do Kwon guilty of fraud and the collapse of the Terra ecosystem, due to which customers lost $40 billion. 

The jury at the trial agreed that Do Kwon and his firm provided deliberately false information regarding the UST stablecoin algorithm.

Earlier, the Podgorica High Court confirmed the absence of legal grounds preventing the extradition of the Terraform Labs co-founder to South Korea or the United States.

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