Some speculated that the legal team’s possible departure could be related to money issues. In contrast, others wanted Do Kwon to face legal action.
Following the supposed change in employment status of many Terraform Labs’ legal department members, the ongoing saga has taken a turn.
According to their Linkedin profiles, the counsel of the Terraform Labs general Marc Goldich, chief litigation, Lawrence Florio, chief corporate counsel, and Noah Axler, regulatory counsel, have all stopped working with Terra blockchain Axler and Florio joined Terra in January 2022, while Goldich began at Terraform Labs in 2021, August.
As a result of the LUNA price crash to $0.00 in two weeks, Terraform Labs changed the employment status of three legal team members. Several stablecoins, including Tether (USDT), deposed the U.S. dollar, while the price of TerraUSD (UST) declined more than 88%.
Do Kwon, the founder of Terraform Labs, proposed a rescue plan for the company on Wednesday in which the company’s team would mint more UST than usual. As Terra blockchain validators halted network activity twice amid extreme volatility, Kwon considered forking the Terra Luna blockchain to save the ecosystem, which is still on a beneath spiral.
Many crypto users, likely facing substantial losses, turned to legal action even before Terraform Labs’ lawyers cut ties with the firm. Axler, Florio, and Goldich’s possible departure was the source of speculation that they faced ethical dilemmas defending Terraform Labs or were concerned about where their next paycheck would come from.
If the legal team were to leave over concerns about Terra (LUNA) or TerraUSD (UST), the legal team would not be the first player to leave a sinking ship in the crypto sector. Joseph Delong resigned during the “chaos” of SushiSwap’s operation in December 2021.