Terraform Labs, the creators of Terra and Luna, has appointed a new CEO in its bid to recover. wall street journal Reported July 20th.
Chris Amani, who has been with Terraform Labs since 2021 and was initially COO and later CFO, is now named CEO of the company. He will succeed Do Kwon, the co-founder and former CEO of the disgraced company, in the position.
The TerraUSD stablecoin collapsed in May 2022, and some South Korean branches of Terraform Labs were dissolved prior to that incident. However, the company continues to operate in Singapore, and Amani was optimistic that the Terra project could revitalize.
He told The Wall Street Journal:
“We know it will be difficult and time consuming, but we have a vision of how to solve this.”
Amani said Terraform Labs plans to develop an application that “provides real utility,” adding that the company will announce more details in the future. He said the company currently has about 40 employees, and those members will continue to run Terraform Labs without Kwon’s leadership. The company reportedly has no plans to issue a new stablecoin to replace the failed TerraUSD stablecoin.
It is unclear how the pending recovery plan will differ from or build on the already operational Terra 2.0 blockchain and Luna Classic (LUNC) token.
Amani agrees to sentence Kwon
Amani also confirmed that the company’s former CEO, Do Kwon, is facing various charges and is currently serving a prison sentence. He said it “makes sense”. [Terra] continue without [Kwon]In Kwon’s current situation.
Do Kwon faces criminal charges against capital market law violations in South Korea and fraud in the United States, as well as a separate civil fraud lawsuit from the U.S. Securities and Exchange Commission (SEC). All of these charges are directly related to the collapse of his $40 billion crypto project, but he has been serving a four-month prison sentence in Montenegro since June for passport fraud.
Court documents cited by The Wall Street Journal said Kwon had stepped down as CEO but remained a controlling stake in the company’s 92% stake.
Amani declined to comment on how the broader issue is affecting the company. Specifically, it did not mention the status of co-founder Daniel Shin or nine others who were indicted by South Korean prosecutors this spring, as reported in April.
But of the roughly 40 people currently employed by Terraform Labs, only 15 were members of the company before the May 2022 crisis, he said.
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