The current saga with Terraform Labs, the blockchain developer behind Terra (LUNA), took a turn following an alleged change in employment status for many on the firm’s legal team.
According to their LinkedIn profiles, Terraform Labs General Counsel Marc Goldich, Chief Litigation and Regulatory Counsel Noah Axler, and Chief Corporate Counsel Lawrence Florio have left the blockchain company as of May 2022. Goldich started at Terraform Labs in August 2021, while Axler and Florio joined in January 2022.
The change in the employment status of three members of the Terraform Labs legal team came after major volatility in the cryptocurrency market after the price of LUNA crashed to 0 in two weeks. Stablecoins, including Tether (USDT), have de-pegged from the US dollar, while the price of TerraUSD (UST) has fallen more than 88% since May 8.
Do Kwon, co-founder of Terraform Labs, on Wednesday proposed a rescue plan in which the company’s team would mint more UST than usual. Terra blockchain validators halted network activity on two separate occasions amid extreme volatility, while Kwon later suggested that users vote to fork the Terra blockchain in an effort to save the ecosystem, which appears to be still in a downward spiral.
Even before some of Terraform Labs’ lawyers apparently cut ties with the company, many cryptocurrency users, likely facing significant losses, they asked legal action against Kwon. Others speculated that the possible departure of Goldich, Axler and Florio could have been the result of a moral dilemma defending Terraform Labs, or concern that the company might not cover their salaries.
The legal team of Terraform labs might have seen something they can’t handle so they resigned. Terraform lawyers Marc Goldich, Lawrence Florio, and Noah Axler have already updated their resignation on LinkedIn. Do Kwon made people lose a lot of money and not everyone will let it go
— Tajo Crypto (@TajoCrypto) May 17, 2022
Terraform labs legal team might have seen something they can’t handle so they resigned. Terraform attorneys Marc Goldich, Lawrence Florio and Noah Axler have already updated their resignation on LinkedIn. Do Kwon made people lose a lot of money and not everyone will let him go.
In case their departure is due to concerns over the LUNA and UST crash, the legal team would not be the first players in the crypto space to abandon a seemingly sinking ship. In December 2021, SushiSwap CTO Joseph Delong resigned citing “chaos” in the decentralized exchange’s management.
Cointelegraph reached out to Marc Goldich, Noah Axler, and Lawrence Florio, but received no response at the time of publication of this story.
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