In the face of legal turbulence surrounding its co-founder, Do Kwon, blockchain firm Terraform Labs has appointed a new CEO.
The change in leadership comes as Kwon, also Terraform Labs' principal shareholder, is under the threat of possible extradition to South Korea or the U.S. from Montenegro.
Steering Through the Storm
The Wall Street Journal reported that Terraform Labs has named U.S. citizen Chris Amani as its new CEO. Amani, who has been with Terraform since 2021, previously served as its chief operating officer and chief financial officer. Prior to his tenure at Terra, Amani held the CEO position at Humanity, a scheduling solution provider. His LinkedIn profile reveals that he took the reins as Terra's CEO in April 2023.
Despite the company's past focus on stablecoins, Amani stated that the firm will not launch any more of such offerings, instead concentrating on other products.
"We have a vision for how we could salvage this, even though I think it's going to be hard and it's going to take a long time," Amani said.
He also expressed hope that Kwon would clear himself of all charges, while affirming that Terra will continue to operate in his absence.
Legal Quagmire and Market Impact
Terra's collapse in May 2022 set off a domino effect that rattled the crypto market. The platform's stablecoin, TerraUSD (UST), lost its peg to the U.S. dollar, inciting investigations into Kwon and co-founder Daniel Shin's suspected involvement in illicit transactions during the collapse.
In March 2023, Kwon was arrested in Montenegro for allegedly using counterfeit travel documents. Although he received a four-month prison sentence, he also faces the prospect of extradition to either the U.S. or South Korea post-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 Fight
In an additional context, Terraform Labs is striving to subpoena bankrupt FTX for relevant documents to defend its case against the U.S. Securities and Exchange Commission (SEC). The SEC had earlier sued Terraform Labs and former CEO Kwon, alleging fraudulent activities and market manipulation leading to the collapse of Terra/LUNA tokens.
The installation of a new CEO and the ongoing legal efforts highlight Terraform Labs' determination to steer its operations despite ongoing woes with its legal status.
Terraform Labs seeks the release of certain trading records from FTX to demonstrate that the destabilization of the Terra USD (UST) was triggered by a coordinated short attack by third parties. If the request is approved, the firm demands the immediate disclosure of these documents, given its trial's commencement by November 30.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
