Terraform Labs will cease operations and transfer network management to the community

Terraform Labs (TFL) CEO Chris Amani has asked the community to take control of the Terra blockchain as the organization will cease to exist. 

2/ TFL always intended to dissolve at some point and that point is now. We will be winding down operations completely. Special thanks to the lunatics who supported us through this process and thanks to the TFL team. I’m incredibly proud that we were able to hold this company…

— Chris Amani | Terra (@fleece_cannon) June 12, 2024

"TFL has always been preparing to break up at some point, and that moment has come now. We will completely shut down our activities. Special thanks to the crazy people who supported us, as well as to the company's team. I am incredibly proud that we managed to preserve the company and the ecosystem [...], despite everything," the publication says.

Amani wrote the post after the firm entered into an agreement with the U.S. Securities and Exchange Commission, which implies a payment of $4.47 billion. The document must be approved by a judge.

According to the CEO of TFL, the company plans to sell its projects in the Terra ecosystem, including Pulsar Finance, Station Wallet and Enterprise DAO.

There will also be a proposal on the network to burn all blocked LUNA tokens intended for Terraform Labs. The team will also independently destroy the coins already available to them.

"The community will have to take over the management of the network. I believe there are several teams and developers who want to do this, and you will see information on the forums soon," Amani said. 

He added that he intends to monitor the process of abolishing TFL and the transfer of powers until the last moment.  

https://forklog.com/exclusive/spiral-smerti-terra-kak-i-pochemu-luna-i-ust-poterpeli-krah

On April 5, a jury in the Southern District Court of New York found Terraform Labs and its co-founder Do Kwon guilty of defrauding investors and securities fraud. The trial took nine days and was held in absentia. 

Recall that in South Korea, numerous charges were brought against Kwon, including violations of capital markets legislation. 

Earlier it became known that he was released from prison in Montenegro after completing his sentence for trying to cross the border with forged documents.