By
Bena Ilyas
May 2nd, 2024
However, some experts and analysts are skeptical about Terraform Labs’ new efforts and its ability to regain the trust of the crypto community.
Terraform Labs, the company behind the TerraUSD stablecoin and the Luna blockchain, has announced a major change in its leadership. The company appointed the former COO Chris Amani as director and interim CEO. Earlier, Do Kwon, the founder and former CEO of Terraform Labs, stepped down from both roles to face his legal battles.
Mr. Armani steps in with over 20 years of leadership experience at global technology companies. Since joining Terraform Labs in 2021 as COO and CFO, Mr. Armani has been integral to the company’s strategy and operations. However, he comes in as CEO at a critical juncture for the company.
Terraform Labs Appoints New CEO amid Legal Woes
Recall that TFL and Do Kwon have been embroiled in a legal battle with the SEC. Following the UST depeg and Luna crash, the SEC accused the duo of misrepresenting the nature and risks of TerraUSD. They also accused them of causing investor loss and triggering a market-wide collapse. Elsewhere, a South Korean court also issued an arrest warrant for Do Kwon while investigating the events that led to the company’s collapse.
Mr. Armani acknowledged the company’s limitations but believes he can lead the company through it. He said, “It’s been a challenging year for Terra following UST’s depeg, but the Terra community and TFL team have shown incredible resilience.”
Terra Ecosystem Will be Rebuilt
Following the collapse, Do Kwon unveiled a revitalization plan that will reset the Luna supply to 1 billion tokens. The new offer would prioritize investors who previously owned Luna Classic (LUNC), TerraUSD Classic (USTC), and Anchor Protocol UST (aUST).
Mr. Armani believes his appointment as CEO will help the rebuilding efforts. He said:
“The process won’t be easy, but we have a clear vision of where Terra fits within the broader Web3 ecosystem.”
He also noted that the company was “hyper-focused” on executing the vision and would share more about it soon.
However, some experts and analysts are skeptical about Terraform Labs’ new efforts and its ability to regain the trust of the crypto community.
Do Kwon Faces Extradition to the US
Meanwhile, Do Kwon is in a Montenegro jail for forging travel documents. Do Kwon was arrested at the Podgorica Airport in March while trying to fly to Dubai and sentenced to four months in jail. He also faces possible extradition to South Korea or the United States after serving his sentence.