The blockchain company Terraform Labs has reportedly named Chris Amani its new Chief Executive Officer. He vowed to shift the entity’s products toward other directions and not offer algorithmic stablecoins.
The previous CEO, Do Kwon, resigned several months ago to focus on his legal issues. He is currently imprisoned in Montenegro, while the USA and South Korea have argued he is the main culprit behind the LUNA/UST crash last year, insisting on his extradition.
Steering Away From Stablecoins
As reported by The Wall Street Journal, the former Chief Operating Officer and Chief Financial Officer of Terraform Labs – Chris Amani – has climbed to the position of CEO. The company raised hopes that the new boss will be the right pick for the role.
Amani promised that his administration will develop applications that provide real utility, saying further details will be released in the following months.
“The process won’t be easy, but we have a clear vision of where Terra fits within the broader Web3 ecosystem and are hyper-focused on executing against that vision. We look forward to sharing more on this soon,” he stated.
Amani also asserted that rebuilding Terraform Labs will exclude the offering of algorithmic stablecoins. Recall that the company-issued UST de-pegged in the spring of 2022, dropping eventually to zero. It triggered colossal investor losses and had a negative impact on the entire cryptocurrency market.
Subsequently, the newly-appointed CEO touched upon Do Kwon. While he wished the ex-boss all the best in his court battles, he outlined that it is essential for Terraform Labs to continue its course without him:
“We wish Do the best, and we hope that he’s able to clear himself of all charges. But while he’s incarcerated and while he’s facing his own legal challenges, it just makes sense for us to continue on without him.”
Despite his legal issues and the fact that he is no longer a CEO, Kwon remains the majority shareholder of Terraform Labs. According to court filings, he owns 92% of the firm’s shares.
From a Crypto Tycoon to a Prisoner
The South Korean developer Do Kwon, who is among the most recognizable names in the crypto industry, has had quite a journey in the past few years.
He was on the crest of a wave while Terra’s native token – LUNA – was charting all-time highs. However, it all changed in May last year when UST lost its peg, causing an excessive amount of LUNA to be minted. This, in turn, triggered a price crash for the latter, with both tokens eventually plummeting to zero.
Instead of collaborating with the authorities, Kwon started moving from one country to another, limiting his engagement on social media platforms such as Twitter.
He was finally arrested in March in Montenegro while trying to onboard a plane with forged documents. The magistrates slammed him with a four-month jail sentence despite his claim that he had no idea the passport was fake.
However, this punishment seems like a walk in the park compared to what might happen to him should he be found guilty of other accusations.
Kwon faces a maximum prison sentence of 40 years in South Korea and 100 years in the USA (depending on where the legal process will take place). Both nations have requested his deportation, alleging him of orchestrating a massive scam and defrauding Terra’s investors.
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