Terraform Labs may close products, services in bankruptcy wind-down

Terraform Labs will shut down a number of products and services on Oct. 30 if no third parties step up to take them over, the company warned on X on Sept. 25. The selloff is part of Terraform’s wind-down after settling with the United States Securities and Exchange Commission (SEC) in June.

Terraform “continues with progress with 3rd party discussions,” it said. Apparently, the discussions are not going ideally, and the tweet reminds both the Terraform community and prospective buyers of Terraform products that their time to act is limited.

Bits of the network on the block

Terraform listed four services and four products that are under discussion. The services include the foundation — the Luna Foundation Guard, of which Do Kwon remains the director, the blockchain explorer and its application programming interface (API) services.

The planned takeovers have been in the works for a while. Terraform CEO Chris Amani announced the company’s intentions on June 12, after it reached its settlement with the SEC:

“I’m incredibly proud that we were able to hold this company and ecosystem together and continue to build innovative products through all of this. We were well positioned to accelerate things if we had won the trial, but unfortunately, we lost and as a result, can no longer operate.”

Related: Do Kwon’s extradition case goes back to Montenegrin justice minister

Community will get busy, buyers may appear

The Terraform community would be asked to take on some of the responsibility for meeting the terms of the bankruptcy. “The community will need to take over ownership of the chain. I believe there are a couple teams and devs who want to do this and you should be seeing information in the forums soon,” Amani said in June. The community would logically take over the network’s basic services.

Pisco testnet APIs shut down in early September in connection with the Terraform bankruptcy plan. Pulsar Finance may have a buyer already, as is omitted from the list of products for sale, even though its sale was mentioned in June.

Terraform filed for bankruptcy in the United States in January. It settled with the SEC in June, agreeing to pay $4.47 billion including disgorgement, penalties and interest. On Sept. 20, a Delaware bankruptcy judge approved the Terraform bankruptcy plan.

Magazine: Low users, sex predators kill Korean metaverses, 3AC sues Terra: Asia Express