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The legal department of Terraform Labs is in shambles following the resignation of key team members. While there are no clear reasons yet behind the slew of resignations, this hasn’t stopped speculations that Terra’s lawyers might have ditched the struggling ship because of financial constraints.
Legal Team Abandons Ship
According to a spokesperson affiliated with the developers, three attorneys have now left Terra’s holding firm. This unfolds about one week after the catastrophic collapse of Terra’s stablecoin, UST, and its native token, LUNA. Developments on the attorney’s LinkedIn profiles also corroborate this story.
Despite Terra CEO Do Kwon’s efforts to restore the Terra ecosystem, more backlash seems to keep coming. Indeed, Terraform’s departure of legal counsels cannot come at an odder time, especially considering the possibilities of lawsuits to come its way. Only recently, a user filed a police report against CEO Do Kwon. And there are inclinations that there may be more to come from aggrieved investors.
The legal attorneys departing Terraform are Marc Goldich, Lawrence Florio, and Noah Axler. Lawrence has been the chief corporate counsel since January, while Marc has been the general counsel for nearly ten months. Noah also spent five months as Terraform Labs’ chief litigation and regulatory counsel.
Consequently, the withdrawal of the legal team will require the blockchain startup to seek legal counsel from outside sources.
Tireless Terra Trudges On
The Terra ecosystem has been struggling to hold on since LUNA’s catastrophe. Yet its leading team has refused to throw in the towel. Founder and CEO Do Kwon unfurled a forking plan to save LUNA two days ago, emphasizing that the Terra universe was bigger than its stablecoin UST. In the same spirit, a Terra representative has suggested the situation is not as dire as people might believe. On the bright side, the large majority of Terra’s employees are still “passionate” about the initiative. The source mentioned that they are doggedly determined to carry out the project’s aim of delivering DeFi to the masses.
While there have been rumors that the withdrawal of the legal counsel team was due to financial issues, none are founded. Other users speculated that the attorneys’ exit could have been down to a moral conflict while defending the blockchain firm.