📌 1. Terraform Labs Bankruptcy/Liquidation Process Continues
Terraform Labs filed for bankruptcy in the USA in 2023, and the bankruptcy process is still ongoing. During this process, the company opened a Crypto Loss Claims portal to compensate creditors for their losses. Through this portal, former investors reported their loss claims for TerraUSD (UST), LUNC, and LUNA on specified dates, and payments related to this are planned.
📌 Dates:
• Applications took place between March 31 – April 30, 2025.
This compensation process is part of the legal proceedings of bankruptcy.
📌 2. Terraform Labs Officially Ceases Operations
The company's CEO, Chris Amani, announced that Terraform Labs would completely terminate its operations and that control of the ecosystem should be handed over to the community. This is part of the development indicated by the 'final chain update' such as Proposal 4818.
➡️ TFL will no longer participate in or support new chain updates. The community is expected to maintain the Terra blockchain, especially with initiatives like the Phoenix Directive.
📌 3. Terra (LUNA) and Terra Classic Developments
• There are still some technical updates or transactions being made for the Terra network; for example, exchanges like Binance may temporarily suspend LUNA deposit/withdrawal transactions for network upgrades. Such moves relate to both liquidity and network stability.
• Shuttle Bridge connections like those for Terra Classic (LUNC) were opened in the past but for a limited time and for the purpose of conversion.
📌 4. Do Kwon's Legal Status – Latest Development
The most striking and up-to-date news on this issue:
Do Kwon was sentenced to 15 years in prison in the U.S. as a result of fraud charges related to Terra/Terraform Labs.
The court ruled that it knowingly misled investors and committed fraud in the collapse of TerraUSD and LUNA.
This decision became an extremely significant turning point in symbolizing the dramatic collapse of the Terra ecosystem.
📌 5. The Future of the Ecosystem: Community and Phoenix Directive
With the withdrawal of Terraform Labs, there is an expectation that the future of Terra will be left to decentralized community initiatives.
Community-led projects like the Phoenix Directive are prioritized to maintain network continuity, validator coordination, and token support.
