When it rains, it pours and the Terra Foundation is going through a massive whirlwind at the moment. According to reports, members of the Terraform Labs’ legal team which included Marc Goldich, Lawrence Florio, and Noah Axler, have all resigned at press time. Terraform Labs is the parent company of the Terra blockchain, and over the past week, multiple employees have allegedly fled from the organization.
The Block reported that the current legal operations have been delegated to an outside counsel at the moment.
Bad to Worse for Terraform Labs and its future?
The resignations were publically confirmed after it was observed that the LinkedIn profiles of the former general counsel members indicated termination of tenure with Terraform Labs in May. According to a spokesperson,
“The past week has been challenging for Terraform Labs, and a small number of team members resigned in recent days. “The vast majority of team members remain steadfastly committed to carrying out the project’s mission. Terra is more than UST, with an incredibly passionate community and a clear vision on how to rebuild. Our focus is now on executing our plan to revive the Terra ecosystem.”
Pressure from all sides for Do Kwon
It is not getting easier for the Terra founder these days, as regulators from around the world are demanding answers as well. As reported earlier, The South Korean lawmakers have urged the government to bring in Do Kwon for an explanation.
The regulators want to hold a hearing in order to get a better idea of the situation and how it got instantaneously out of hand. The government’s objective remains to protect future investors and there have also been talks about regulating the stablecoin market.
While a fraction of the Terra community is still supporting Do Kwon’s recovery plan(which involves a hard fork now), it is largely becoming evident that the founder may face some form of legal repercussions in the future, if things continue to move south.