Terraform Lab’s Legal Team Resigned After Collapse of UST

Shortly after the May 9 collapse of Terra’s algorithmic stablecoin, TerraUSD (UST), that saw it go from $1 to $0.09, the in-house legal team resigned. At the same time, Terra’s native token LUNA dropped from $61 to currently less than one penny. 

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 have since left the company. 

“The past week has been challenging for Terraform Labs, and a small number of team members resigned in recent days,” said a spokesperson for the company, reported by The Block. “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.”

This news comes as Terraform Labs founder Do Kwon released a plan to keep Terra alive. He suggested forking Terra to a new chain that would entirely cut out its failed UST product and instead focus on decentralized finance (DeFi) applications on the network. While that was just a proposal, if the majority of network validators and the community approve of this recovery effort, the new network could launch as early as May 27. 

Kwon has been extremely active on Twitter, retweeting messages of those validators and community members supporting the new network. However, prior to his recent activity starting on May 16, he was unconventionally silent since the collapse, only infrequently posting updates about Terra. 

His new series of tweets started with “Terra is more than $UST.” 

Author: Tyler Irvin

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