Terraform Labs to sell four projects as it winds down operations


Terraform Labs will sell some of the projects it owns as a part of its $4.47 billion settlement with the United States Securities and Exchange Commission (SEC). The company is set to wind down operations.

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In a July 9 announcement, the defunct Terra blockchain creator said it was “exploring options” to sell four of its projects.

Four project up for sale

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According to Terra Labs, the sale seeks to “maximize value” for related creditors and stakeholders in the case. 

It is a part of the broader wind-down of operations under the terms of its settlement with the US Securities and Exchange Commission,” the announcement added.

The four projects for sale include Pulsar Finance, a portfolio tracker; Station, a crypto Wallet; Enterprise DAO, the no-code decentralized autonomous organization (DAO) management platform Enterprise; and Warp, a smart contract automation protocol.

Enterprise is the oldest project among the four, launched in November 2022. The firm acquired Pulsar Finance in November 2023. Meanwhile, the Warp protocol and Station wallet will continue to remain active at the time of publication.

The sales will be carried out by Terra Lab’s investment banker, CAVU Securities, LLC. Interested parties have been urged to contact the banker directly.

At the time of writing, there have been no reports of any offers.

The History of Terraform bankruptcy

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Plans to sell its projects was initially announced by CEO Chris Amani on July 13. The project also disclosed its intentions to burn all unvested and vested Luna tokens at the time.

After filing for Chapter 11 bankruptcy in January 2024 Terraform reached a settlement with the SEC on June 12 after a jury found the firm and its founder, Do Kwon, responsible for the collapse of TerraLuna (LUNC) and TerraUSD (UST).

It followed a two-week trial in March and a preliminary deal agreedn upon in May. The regulator initially sought $5.3 billion in penalties.

Per the SEC complaint Terraform Labs had and Kwon had deceived investors about the stability of its UST stablecoin. The firm also made false claims about the Terra blockchain being used by a popular Korean mobile payment app.

Both Kown and Terraform agreed to pay a $110 million in disgorgement, $14.3 million in prejudgment interest, and an $80 million civil penalty. On top of the penalty, Kwon and his firm has been banned from operating in the crypto sector.

The agreement also marked the largest settlement between the commission and a cryptocurrency firm.

At press time, the price of Luna was down 1.03% at $0.3791. 

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