- Terraform Labs informed users that the court may order the firm to cease some operations in light of the SEC’s request to restrict the firm’s activity.
- TFL will restrict access to some products and services for US-based users.
- LUNA price is down 2.25% since Monday.
Blockchain company Terraform Labs said Thursday that it will restrict access to some of its products and services for US-based users as it expects to receive a court order soon in light of its legal battle against the US Securities and Exchange Commission (SEC).
Terraform Labs to restrict access for US-based users
Terraform Labs is making changes to its operation, according to a recent announcement in a tweet on X. The firm said that it will change active liquidity provisioning and access to Terraform Labs (TFL) products in certain jurisdictions.
The SEC brought enforcement actions against Terraform Labs and founder Do Kwon, asking a New York court to impose $5.3 billion in fines for the firm’s role in the $40 billion implosion of the Terra ecosystem, (LUNA-UST sister tokens and UST depegging) in 2022.
TFL said it may receive a “conduct injunction,” meaning the court could order the firm to cease some of its activities. Terraform Labs is preparing for this by restricting access to some of its product and features for US-based users next week.
TFL said that it is against geoblocking but it has no choice given the circumstances. Open source projects such as the Terra blockchain and Alliance will not be affected by the developments, the company said.
The firm will also withdraw liquidity from its positions, starting April 26, as required by the court ruling.
1/ Attention Terra community:
— Terra Powered by LUNA (@terra_money) April 25, 2024
Due to the recent court ruling, TFL is making changes to its operations moving forward, including active liquidity provisioning and access to TFL products in certain jurisdictions.
The LUNA withdrawn from these positions will be held in a multisig wallet during the bankruptcy proceedings.
LUNA is exchanging hands at $0.6345 at the time of writing, down 2.25% this week.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Crypto Today: Cardano, XLM, FLOKI lead $3.1 trillion rally, Russia bans crypto mining, Bitcoin eyes $95K
Cardano (ADA) price action ADA’s ongoing rally has been attributed to rumors that the Trump administration could collaborate with the Cardano network to build a blockchain voting system.
Trump administration allegedly seeks to create new crypto position in White House
President-elect Donald Trump and his team are reportedly seeking to introduce a new White House position for crypto policy, Bloomberg reported on Wednesday.
Solana Price Forecast: Traders move 6.7B SOL as bulls target all-time highs
Solana price has succumbed to a 7% dip after rejecting the $250 resistance on Monday. Negative shifts in vital trading indicators suggest bears could delay the all-time high breakout target.
FLOKI to go live on Coinbase few days after the exchange listed PEPE and WIF
Floki Inu (FLOKI) is down 5% on Wednesday following crypto exchange Coinbase's announcement that the token will begin trading on its platform over the next 24 hours.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.