- Terraform Labs has announced it is winding down operations after a $4.47 billion settlement with the SEC
- CEO Chris Amani has stated the company always intended to dissolve eventually, and that time has come
- Amani thanked supporters and acknowledged that losing the trial has made continued operations impossible
Terraform Labs is “winding down operations completely” following its joint $4.47 billion settlement with the US Securities and Exchange Commission. CEO Chris Amani shared the news on X yesterday, saying that the company “always intended to dissolve at some point and that point is now.” Amani thanked the group’s supporters and said that things could have been different had Terraform Labs won the trial “but unfortunately we lost and as a result, can no longer operate.”
Hail Mary Fails to Land
Terraform Labs and its former CEO, Do Kwon, this week reached a provisional settlement with the SEC over allegations of securities fraud, agreeing to pay a total of $4.47 billion in disgorgement and civil penalties. Amani revealed that, unsurprisingly, this has put paid to any hopes the project had of continuing in some form:
2/ TFL always intended to dissolve at some point and that point is now. We will be winding down operations completely. Special thanks to the lunatics who supported us through this process and thanks to the TFL team. I’m incredibly proud that we were able to hold this company…
— Chris Amani | Terra (@fleece_cannon) June 12, 2024
Amani claimed that the chain itself was not dead and called on the community to carry it forward, noting that “there are a couple teams and devs who want to do this” and added that he was waiting on details from the courts before outlining next steps:
we have a lot more to plan over the coming weeks, and I’ll be able to communicate more once this has been approved by the courts. I’ll be here for the full wind down to ensure all goes smoothly.
Terraform Labs had already signaled that such an end was inevitable when it filed for Chapter 11 bankruptcy in the US in January and added shortly afterwards that it could only afford one shot at defeating the SEC, a shot it has now fired and missed.
The $4.47 billion settlement includes disgorgement, prejudgment interest, and civil penalties, with Kwon personally responsible for at least $204 million, leaving Terra on the hook for the rest, a sum it almost certainly cannot afford.
