In a court filing submitted on January 30, 2024, Chris Amani, the new CEO of Terraform Labs, claimed that the firm is not built to generate profits; instead, any profits earned are reinvested to expand the business.
This latest court document, which contains this claim, comes within the context of Terraform’s ongoing bankruptcy case in US courts and provides insights from a major stakeholder regarding the events leading up to the company’s declaration of bankruptcy.
Amani explained that the primary goal for the Terra Blockchain was not to gain profit but to facilitate faster, more accessible, and more customer-friendly transactions. He also clarified that Terra is not issuing or selling any cryptocurrency to generate revenue or offering trading services for virtual currencies.
Amani also emphasized that the decision to file for bankruptcy positions Terraform Labs to rebound and reemerge within the crypto sphere in a restructured manner that would ultimately benefit its investors.
Appointed as CEO on June 8 last year, Amani assumed responsibility for the company’s executive operations as Do Kwon, the founder and former CEO, faced legal battles with US regulators for his connections with the 2022 collapse of the Terra blockchain.
Kwon, who is in extradition custody in Montenegro, recently sought a trial adjournment due to delays in the extradition process. This plea prompted the US Securities and Exchange Commission (SEC) to agree to reschedule the trial originally slated for January 29 to April.
The Terraform Labs saga traces back to May 16, 2022, when the company experienced a meltdown that sent shockwaves across the crypto landscape. The fallout saw Terra’s native LUNA token plummet from $80 to below $1, alongside the depegging of its UST stablecoin from the US dollar. Over $400 billion in losses were recorded as a result of the whole saga.
In response to the crisis, Kwon and his team orchestrated a reboot and introduced Terra 2.0, devoid of any ties to its former algorithmic stablecoin that was pointed to as a significant reason for its first collapse. Additionally, they launched a new Terra blockchain, dubbed Terra Classic, featuring the Luna Classic (LUNC) native token.
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