Just In: Terraform Labs To Cease Operations After SEC Settlement

Julia Smith

Last updated:

June 13, 2024 10:10 EDT | 1 min read

Terraform Labs, the blockchain protocol created by crypto fraudster Do Kwon, is formally shutting down after agreeing to pay $4.5 billion to the United States Securities and Exchange Commission (SEC) to settle its civil fraud suit on June 12, the company’s current CEO Chris Amani revealed.

In series of X posts published by Amani on Tuesday, Terraform Labs “always intended to dissolve at some point” and is now “winding down operations completely” in light of its settlement with the SEC.

According to Amani, what remains of the now bankrupt crypto company will be sold to digital asset portfolio manager Pulsar Finance, wen3 interface Station Wallet, and DAO management firm Enterprise Protocol.

1/ With the proposed settlement now public, i can finally share some details about what is next for TFL.

— Chris Amani | Terra (@fleece_cannon) June 12, 2024

“I’m incredibly proud that we were able to hold this company and eco together and continue to build innovative products through all of this,” Amani wrote. “We were well positioned to accelerate things if we had won the trial, but unfortunately we lost and as a result, can no longer operate.”

More information on the crypto company’s shutdown will be made available in the coming weeks.

Editorial note: This story is currently being added to. For the full story check back soon as we add more information and/or perspectives from those involved.

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