The ongoing saga with Terraform Labs, the blockchain developer behind Terra (LUNA), has taken a turn after a supposed change in the employment status of several members of the company's legal team.< /p>
According to their LinkedIn profiles, Terraform Labs general counsel Mark Golditch, chief litigation and regulatory counsel Noah Axler, and the company's senior counsel Lawrence Florio have ceased operations. In a blockchain company as of May 2022. Goldish started at Terraform Labs in August 2021 while Axler started and joined Florio in January 2022.
As reported by CoinTelegraph, the change in employment status for three members of Terraform Labs' legal team came after huge volatility in the cryptocurrency market after the Luna price crashed to ( zero) dollars in two weeks. Stable currencies including Tether (USDT) have been decoupled from the US dollar, while the USDT (UST) is down more than 88% since May 8.
Teraform Labs co-founder Do Kwon proposed a rescue plan on Wednesday in which the company's team would mint more UST tokens than usual. The validators of the Terra Blockchain also halted the network’s activity twice separately amid heavy volatility, while Kwon later suggested that users vote to form the Terra Luna Blockchain in a bid to save the ecosystem, which is apparently still in a downward spiral.
Even before some of Terraform Labs' lawyers cut ties with the company, several crypto users, likely facing significant losses, called for legal action against Kwon. . Others have speculated that the possible departures of Golditch, Axler and Florio may be the result of a moral dilemma defending Theraform Labs, or concerns about where their next paycheck will come from.
If their departure is due to concerns about the relegation of LUNA and UST, the legal team will not be the first players in the crypto space to abandon a seemingly sunken ship. In December 2021, Joseph DeLong, chief technical officer of Sushi Swap, resigned, citing chaos in the management of the decentralized exchange.