Crypto Users Respond to Terraform Labs Legal Team Departure

The developer behind the Terra blockchain is experiencing a shift in events after the employment status of many on the Terraform Labs legal team changed.

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 all ceased working for the blockchain company in May 2022. Work. Goldich began working for Terraform Labs in August 2021, while Axler and Florio joined the company in January 2022.

The price of LUNA plummeted to $0.00 in two weeks before the change in the employment status of three members of Terraform Labs’ legal team, leading to major volatility in the crypto market. Stablecoins including Tether (USDT) have been de-pegged from the U.S. dollar, while TerraUSD (UST) is down more than 88% since May 8.

Terraform Labs co-founder Do Kwon proposed a rescue plan on Wednesday in which the company’s team will mint more UST than usual. Validators on the Terra blockchain stopped network activity twice amid extreme volatility, and Kwon later suggested users vote to fork the Terra Luna blockchain in an effort to save the ecosystem, but it still appears to be in a vicious cycle.

Even before some of Terraform Labs' lawyers appeared to sever ties with the company, many cryptocurrency users who could face significant losses called for legal action against Kwon. Others have speculated that the potential departures of Goldich, Axler and Florio could be the result of ethical dilemmas defending Terraform Labs, or concerns about not getting their next paycheck.

If their departure was driven by concerns about the collapse of LUNA and UST, the legal team would not be the first in the crypto space to abandon ship and save themselves. In December 2021, SushiSwap Chief Technology Officer Joseph Delong resigned, citing the "chaotic" operation of the decentralized exchange.

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