Woes in the Terra community are only deepening, and the chances of UST holders being compensated for their losses are growing smaller by the day. The Terra legal community team has reportedly resigned from the project, and the network’s legal matters are now in the hands of outside counsel.
Terraform Labs Legal Team Resigns
The LinkedIn details of the Terraform Labs’ legal team already show that they have stopped working at the company. General counsel Marc Goldich, the chief corporate counsel Lawrence Florio and the chief litigation and regulatory counsel Noah Axler depict that they resigned from the company in May.
The resignation of the Terraform Labs legal team happened shortly after the UST stablecoin lost its peg. The team had been working at the company for less than one year, and they had been part of the project at a time when it witnessed massive gains and rose to become a top ten cryptocurrency in the market.
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A spokesperson from the company released a statement saying, “The past week has been challenging for Terraform Labs, and a small number of team members resigned in recent days. 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.”
The Collapse of Terra
The news of the resignation of this team has dealt another major blow to the Terra team, which is already grappling with the devastating effects of the collapse of Terra LUNA and the UST stablecoin.
The Terraform Labs ecosystem was created by Do Kwon and Daniel Shin in 2018. The ecosystem is behind the Terra network, and it was one of the best-performing projects in the market. Before its collapse, UST was the third-largest stablecoin by the issuance, but its current value has collapsed way below $1.
The Terra community tried to save the peg using their Bitcoin reserves and minting LUNA tokens that will be used to save the value of the algorithmic stablecoin. The Terra blockchain has been halted twice since the collapse of LUNA and UST, but this did not save the value of the stablecoin.
Following the chaos within the Terra community, Kwon has promoted the idea of forking the blockchain. However, the community is against the idea of forking the blockchain, and the majority of the community has downvoted the proposal.
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