The ongoing situation with Terraform Labs, took a turn following a supposed change in employment status for many on the firm’s legal team.
Terraform Labs general counsel Marc Goldich, chief litigation and regulatory counsel Noah Axler and chief corporate counsel Lawrence Florio have all stopped working for the blockchain firm as of May 2022.
The change in employment status for thelegal team followed major volatility in the crypto market after the price of LUNA collapsed to $0.00. Stablecoins including Tether depegged from the U.S. dollar, while the price of TerraUSD (UST) has dropped more than 88% since the incident.
The co-founder of Terraform Labs Do Kwon, proposed a rescue plan in which the company’s team would mint more UST than usual. Validators for the Terra blockchain stopped network activity two separate times amid extreme volatility, while Kwon later suggested users vote to fork the Terra Luna blockchain in an effort to save the ecosystem..
Even before some of Terraform Labs’ lawyers seemingly cut ties to the firm, crypto users likely facing significant losses called for legal action against Kwon.
