Terraform Labs’ in-house legal staff left shortly after the failure of Terra’s algorithmic stablecoin wreaked havoc on cryptocurrency markets. Legal operations are now being handled by outside counsel, according to a source familiar with the situation.
Terraform Labs’ general counsel, Marc Goldich, chief corporate counsel Lawrence Florio, and chief litigation and regulatory counsel Noah Axler all left the firm in May after less than a year on the job, according to their LinkedIn accounts.
The resignations come after a difficult week for Terraform Labs, based in Singapore, and the blockchain it manages.
The Terra blockchain is powered by Terraform Labs, which was founded by Do Kwon and Daniel Shin in 2018. Early last week, Terra’s UST, the third largest stablecoin by issuance, de-pegged substantially from its target price of $1. In a desperate attempt to reestablish the peg, billions of dollars in bitcoin were sold and enormous numbers of Terra’s native currency, LUNA, were created, but to no effect.
Both LUNA and UST saw their prices plummet. Terra’s blockchain has been shut down twice, resulting in significant losses for investors.
Kwon has been supporting a plan to fork Terra to build a new blockchain in the aftermath of last week’s upheaval, but the community appears to be opposed to the notion. Goldich, Florio, and Axler were contacted for comment but did not respond by the time of publication.
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