The ongoing dispute with Terraform Labs, the blockchain creator responsible for Terra (LUNA), turned a corner due to a rumored change in the status of employment for several members of the company’s legal team.
As per the information on their LinkedIn Profiles, Terraform Lab’s general counsel Marc Goldich, chief litigation and regulatory counsel, Noah Axler, and chief corporate counsel Lawrence Florio have all ceased working with the firm that is a blockchain in May 2022. Goldich was hired with Terraform Labs in August 2021, while Axler and Florio joined in January 2022.
The changes in the status of employment of three employees of Terraform Labs’ legal team resulted in significant volatility in the cryptocurrency market following the prices of LUNA falling down to $0.00 in just two weeks. Stablecoins, including the Tether (USDT), were depegged from the U.S. dollar, while the price of TerraUSD (UST) has fallen over 88% since May 8.
Do Kwon, the co-founder of Terraform Labs, proposed an idea for rescuing the Terraform Labs on Wednesday, in which the team of Terraform Labs would produce more UST than normal. Verifiers on Terra’s Terra blockchain have stopped all activity on the network twice in the midst of extreme volatility. Kwon then suggested that users take a vote to split to the Terra Luna blockchain in a bid to salvage the entire ecosystem, which is still reportedly going downhill.
While certain members of Terraform Labs’ lawyers seemingly have walked away from the firm, however, a lot of crypto users, who are likely to suffer massive losses, called for legal action against Kwon. Some thought that the possible resignation from Goldich, Axler, and Florio could be an outcome of an ethical dilemma. They were defending Terraform Labs or concerns regarding the point at which their next paycheck will come from.