Terraform Labs to restrict US users access following SEC ruling
Commencing next week, Terraform Labs will impose restrictions on certain products and features, notably pertaining to the buying, selling, and trading of crypto asset securities for US users, in response to injunctions initiated by the SEC. The specific affected products and features are yet to be determined.
Furthermore, Terraform Labs will initiate the withdrawal of $23.8 million worth of liquidity from various platforms, including Astroport, Ura, and White Whale.
Terraform Labs has announced its intention to store the withdrawn LUNA tokens in a multi-signature account throughout the bankruptcy proceedings.
Terraform Labs, registered in Singapore and the creator of stablecoin TerraUSD, has filed a voluntary Chapter 11 bankruptcy petition in Delaware as of January 21st, 2024.
Speculators are now pondering whether LUNA, LUNC, and USTC will face delisting from exchanges. Interestingly, LUNC and USTC have long been detached from Terraform Labs and the forked LUNA crypto asset. Some also speculate that developers and projects associated with LUNA may migrate to LUNC, potentially benefiting LUNC and aiding in the continued efforts for the recovery and re-pegging of USTC.
Well as the saying goes : What is dead may never die.
