- A two-week price drop of LUNA to $0.00 prompted Terraform Labs’ legal team to resign.
- The legal team’s resignation would not be the first in the crypto industry.
Following the reported change in employment status for several Terraform Labs’ legal staff members, the long-running issue with Terraform Labs, the blockchain developer behind Terra (LUNA), has taken an unexpected turn.
According to their LinkedIn profiles, all three Terraform Labs general counsels have left the blockchain organization as of May 2022: Marc Goldich, Noah Axler, and Lawrence Florio. Axler and Florio joined Terraform Labs in January 2022, while Goldich began working there in August 2021.
Stablecoins Not Stable Anymore
A two-week price drop of LUNA to $0.00 prompted Terraform Labs’ legal team to resign. As of May 8, stablecoins such as Tether (USDT) and TerraUSD (UST) were no longer tied to the US dollar. Founder Do Kwon of Terraform Labs came up with a strategy to save the firm on Wednesday to see the company’s personnel mint more UST than normal. First, the Terra blockchain was paused twice, and then Kwon offered users a vote to fork the Terra Luna blockchain, which was still on a downward spiral, as an attempt to preserve the ecosystem from collapse.
Some Terraform Labs attorneys seem to have broken links to Kwon even before the firm’s customers, many of whom were likely suffering considerable losses, called for legal action against the company. Others hypothesized that Goldich, Axler, and Florio’s possible departure was due to their moral problem in supporting Terraform Labs or their uncertainty about their next salary.
The legal team’s resignation would not be the first in the crypto industry if they were concerned about the LUNA and UST crashes. Joseph Delong, SushiSwap’s chief technical officer, resigned in December 2021, claiming “chaos” in the decentralized exchange’s operations.