December 3, 2023

Blockchain firm Terraform Labs has named a new CEO in the face of legal turmoil surrounding co-founder Do Kwon.

Changes in leadership occurred in rightalso a major shareholder of Terraform Labs, is facing the Possible extradition from Montenegro to South Korea or the US.

ride out the storm

Terraform Labs has named American citizen Chris Amani as its new CEO, The Wall Street Journal reported. Amani has been with Terraform since 2021 and previously served as its chief operating officer and chief financial officer. Prior to joining Terra, Amani was CEO of Humanity, a provider of scheduling solutions. According to his LinkedIn profile, he will take over as CEO of Terra in April 2023.

Although the company has focused on stablecoins in the past, Amani said the company won’t start again such products instead of focusing on other products.

“We have a vision of how to salvage this situation, although I think it will be difficult and take a long time,” Armani said.

He also expressed hope that Kwon will be cleared of all charges, while confirming that Terra will continue to operate in his absence.

Legal Dilemmas and Market Impact

Terra’s collapse in May 2022 set off a domino effect that rattled the cryptocurrency market. The platform’s stablecoin, TerraUSD (UST), lost its peg to the U.S. dollar, sparking an investigation into Kwon and co-founder Daniel Shin’s alleged involvement in illicit transactions during the crash.

March 2023, right used to be arrested in Montenegro Suspected of using forged travel documents. Although he was sentenced to four months in prison, he also faces the possibility of being extradited to the United States or South Korea after serving his sentence. South Korean prosecutors issued an arrest warrant for Kwon in 2022, accusing him of violating the country’s capital market laws. he was later released on bail.

Terraform’s legal battle

Separately, Terraform Labs is working to issue a subpoena to bankrupt FTX for documents to defend against the U.S. case Securities and Exchange Commission (SEC). The SEC had earlier sued Terraform Labs and former CEO Kwon, alleging fraudulent activity and market manipulation that led to the collapse of the Terra/LUNA token.

The arrival of a new CEO and ongoing legal work underscores Terraform Labs’ determination to take control of its operations despite ongoing issues with its legal status.

Terraform Labs seeks FTX to release certain transaction records to demonstrate that the instability in Terra USD (UST) was caused by a coordinated short-selling attack by a third party. If the request is granted, the company requested immediate disclosure of the documents, given that the trial will begin on Nov. 30.

Disclaimer: This article is for informational purposes only. It does not provide or be intended to be used as legal, tax, investment, financial or other advice.