Terraform Labs, the company behind Terra LUNA, which was once praised by American business people and investors, including Mike Novogratz, but disbanded in May 2022, causing the Bitcoin price to drop to $17,000, is now ending its activities.

As it is known, the company responsible for the development of the LUNA ecosystem had agreed to terminate its activities as a result of an agreement with the US Securities and Exchange Commission (SEC). In the case filed by the US court, the committee found the SEC right and ruled that the LUNA tokens sold by Do Kwon were unregistered investment contracts.

Terraform Labs, whose bankruptcy application process continues after all these events, announced that it will not be involved in any development process after the update number 4818 in accordance with the agreement. The following statements were used in the statement made:

“As TFL begins winding down its operations, Proposal 4818 will be the final chain upgrade that we implement. Pursuant to TFL’s settlement with the SEC and implementation of its proposed chapter 11 plan, TFL will no longer have the ability to support future chain upgrades. Going forward, we look to community-driven initiatives such as the Phoenix Directive to take over maintenance and operational responsibilities for the Terra blockchain.”

The company will also pay a penalty of $4.5 billion under the agreement with the SEC.
The token renamed after the collapse of LUNA, Luna Classic (LUNC) is trading at $0.000085 at the time of writing. This token had reached over $100 before the ecosystem collapse.

LUNA, which the ecosystem just issued after the collapse, is trading at $0.36.