After a supposed change in job status for several employees of Terraform Labs’ legal team, the ongoing saga with Terraform Labs, the blockchain developer behind Terra (LUNA), took a turn.
Terraform Labs’ internal legal staff resigned shortly after Terra’s algorithmic stablecoin imploded, causing a massive blow to the broader crypto markets.
Terraform Lab’s general lawyer Marc Goldich, chief litigation, and regulatory counsel Noah Axler, and chief corporate counsel Lawrence Florio all left the blockchain business in May 2022, according to their LinkedIn profiles. Axler and Florio joined Terraform Labs in January 2022, while Goldich started in August 2021.
A major hit for Terraform and the entire ecosystem
“Terraform Labs has had a challenging week, and a small number of staff members have resigned recently,” a company spokesperson said.
“The vast majority of team members are still dedicated to fulfilling the project’s objectives. Terra is more than UST, with a strong community and a well-defined rebuilding strategy. The Terra spokesman stated, “Our current focus is on implementing our plan to restore the Terra ecosystem.”
Do Kwon, a prominent co-founder of Terra has made various proposals for Terra’s future in the days following the collapse of UST and LUNA.
The most recent plan, known as “Terra Ecosystem Revival Plan 2,” advocates for the permanent destruction of UST and the forking (splitting) of LUNA to LUNA Classic (LUNC) and the new coin to be called LUNA.
Previous UST and LUNA investors who lost a significant investment in the coin, as well as current LUNA holders, would be airdropped 1 billion new LUNA tokens as part of the plan.
Many crypto users, possibly experiencing big losses, advocated for legal action against Kwon even before some of Terraform Labs’ lawyers reportedly terminated connections with the firm. Others claimed that Goldich, Axler, and Florio’s possible resignation was due to a moral issue while defending Terraform Labs or concerns about where their next salary would come from.
The legal staff would not be the first in the crypto world to flee a sinking ship if their departure was related to concerns about the LUNA and UST crashes. SushiSwap’s chief technology officer, Joseph Delong, resigned in December 2021, claiming “chaos” in the decentralized exchange’s operations.