Terraform Labs, the company behind Terra (LUNA), is planning to sell four subsidiaries to pay off a hefty fine from a US court.
Terraform Labs Faces Financial Pressure
The development team behind the Terra ecosystem urgently needs to raise funds. Last month, Terraform Labs was slapped with a nearly $4.5 billion fine by a US court, creating a significant financial burden.
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Companies Up for Sale
To gather the necessary funds, Terraform Labs, led by Do Kwon, who was also convicted of fraud, has announced it will sell four of its companies. These are:
- Pulsar: A portfolio tracker.
- Station: A non-custodial wallet.
- Enterprise: A decentralized autonomous organization (DAO).
- Warp: A decentralized protocol for smart contracts.
Unclear Future
There’s no word yet on potential buyers or the expected prices for these companies. This move underscores the financial challenges Terraform Labs is currently facing.
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The Fall of Terra
The Terra ecosystem was once a leading player in the crypto world, with its stablecoin UST and the linked cryptocurrency LUNA gaining significant popularity. However, in May 2022, UST collapsed, taking LUNA down with it. This event led to $40 billion in losses and is widely seen as the trigger for the crypto winter.
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