Several people voiced their support for legal action against Do Kwon on social media. In contrast, others theorized that the possible departure of the legal team may have been due to financial problems.
Following what was reported to be a change in employment status for several members of the company's legal staff, the continuing drama involving Terraform Labs, the blockchain developer behind Terra (LUNA), took a new and unexpected turn.
According to the information provided on their LinkedIn pages, terraform labs general counsel Marc Goldich, chief litigation and regulatory counsel Noah Axler, and chief corporate counsel Lawrence Florio are no longer employed by the blockchain company as of May 2022. While Goldich began working at Terraform Labs in August 2021, Axler and Florio didn't arrive until January 2022.
After the price of LUNA dropped to $0.00 in less than two weeks, three employees of Terraform Labs' legal team had their work status modified as a direct result of the significant volatility that engulfed the cryptocurrency market. Stablecoins, such as Tether (USDT), have debugged from the U.S. dollar, and since May 8, the price of TerraUSD (UST) has decreased by more than 88 percent.
On Wednesday, Do Kwon, one of the co-founders of the terraforming labs team resigned and offered a rescue plan in which the employees at the firm would mint a greater number of UST than is typical. In the face of high volatility, validators for the Terra blockchain twice temporarily suspended network activity. Kwon subsequently advised that users vote to fork the Terra Luna blockchain to salvage the ecosystem, which seemed to be continuing its downward spiral.
Even before it seemed that some of the terraforming labs' crypto attorneys had severed their links to the company, many cryptocurrency users who were likely going to suffer big losses asked for legal action to be taken against Kwon. Others hypothesized that the possible departure of Goldich, Axler, and Florio may have been the consequence of a moral problem arising from their defense of terraform crypto or anxiety over the source of their subsequent source of income.
Should their resignation be related to worries about the LUNA and UST collapse, the legal team would not be the first players in the cryptocurrency field to exit what seems to be a sinking ship, even if that is the reason for their departure. Joseph Delong, the chief technical officer of SushiSwap, resigned in December 2021, claiming "chaos" in the operation of the decentralized exchange as his reason for leaving.