Terra community to own chain after TFL wind-down; Coinbase exec slams SEC settlement

Terra, the blockchain platform, is set to become a community project as Terraform Labs winds down operations following a $4.5 billion settlement with the U.S. Securities and Exchange Commission (SEC). Terraform Labs CEO Chris Amani announced that the community will take over ownership of the chain, with teams and developers indicating their intention to handle the project and make announcements on the forums. Amani clarified that Terraform Labs had always intended to dissolve and can now proceed with the wind-down process. During this period, the company will continue to operate its products. As part of the wind-down, the company will sell Pulsar Finance, Station Protocol, and Enterprise Protocol. In a separate development, Coinbase CEO Paul Grewal criticized the outcome of the SEC settlement, claiming it provided little relief to fraud victims. He also mentioned that the SEC demanded Terra’s co-founder and former CEO, Do Kwon, to hand over $7 million in assets. Messari CEO Ryan Selkis similarly questioned the settlement amount, suggesting it should go towards a victims’ restitution fund rather than the SEC. The majority of the settlement amount will be claimed by the SEC as an unsecured creditor, while investors affected by the fraud will receive certain assets transferred by Kwon to the Liquidating Trust.