TerraThe spotlight is again on the Terra blockchain farce, this time about losing its legal team  

The ongoing trouble with Terraform Labs, the blockchain developer behind Terra (LUNA), took a turn after a purported modification in job status for some members of the company’s legal staff. The internal legal team at Terraform Labs resigned shortly after the implosion of Terra’s algorithmic stablecoin caused a significant blow to the broader crypto markets. Three members of Terraform Labs’ legal team have left the company, according to their Linkedin profiles that show their departure from the firm this month.

The crypto community is once again throwing the spotlight on the Terra blockchain disaster, as the project’s in-house legal team seems to have left the company Terraform Labs (TFL) unexpectedly. That’s according to three individual profiles on Linkedin that show Noah Axler, Lawrence Florio, and Marc Goldich left in May. Terra was once a leading multi-billion-dollar project, and TFL raised millions from prominent investors. An in-house lawyer or legal team is common among blockchain projects dealing with global regulators.

The Cause of this Effect 

A two-week price drop of LUNA to US$0.00 prompted Terraform Labs’ legal team to resign. As of May 8, stablecoins such as Tether (USDT) and TerraUSD (UST) were no longer tied to the US dollar. Founder Do Kwon of Terraform Labs came up with a strategy to save the firm on Wednesday to see the company’s personnel mint more UST than normal. First, the Terra blockchain was paused twice, and then Kwon offered users a vote to fork the Terra Luna blockchain, which was still on a downward spiral, as an attempt to preserve the ecosystem from collapse.

Some Terraform Labs attorneys seem to have broken links to Kwon even before the firm’s customers, many of whom were likely suffering considerable losses, called for legal action against the company. Others hypothesized that Goldich, Axler, and Florio’s possible departure was due to their moral problem in supporting Terraform Labs or their uncertainty about their next salary.

“The past week has been challenging for Terraform Labs, and a small number of team members resigned in recent days. The vast majority of team members remain steadfastly committed to carrying out the project’s mission. Terra is more than $UST, with an incredibly passionate community and a clear vision of how to rebuild. Our focus is now on executing our plan to revive the Terra ecosystem," a Terraform Labs spokesperson told CoinDesk.

However, the legal team’s resignation would not be the first in the crypto industry if they were concerned about the LUNA and UST crashes. Joseph Delong, SushiSwap’s chief technical officer, resigned in December 2021, claiming “chaos” in the decentralized exchange’s operations.