Terraform Labs has appointed a new interim CEO, Chris Amani, amid the ongoing legal troubles of its co-founder, Do Kwon.
What Happened: Amani, previously the company's COO and CFO, is stepping in to lead the crypto firm during this challenging time, The Wall Street Journal reported.
Terraform is striving to maintain normal operations despite recent setbacks, and even rejuvenate the Terra blockchain, which was the foundation of the collapsed cryptocurrency.
Amani, who is based in the U.S., stated that the company plans to create applications with "real utility" and will reveal more about its strategies in the upcoming months.
"We have a vision for how we could salvage this, even though I think it's going to be hard and it's going to take a long time," he said.
Terraform Labs currently employs around 40 people and has no plans to launch a new stablecoin.
Also Read: US Congressman Ritchie Torres Challenges SEC's Crypto Onslaught
Why It Matters: Kwon, Terraform's former chief, is currently facing fraud allegations related to the $40 billion downfall of TerraUSD and Luna LUNA/USD cryptocurrencies in May 2022.
He was incarcerated in Montenegro. Both the U.S. and Kwon's home country, South Korea, are pursuing his extradition.
Kwon stepped down from his role as CEO of the Singapore-based Terraform Labs on March 31, shortly after his arrest. He resigned from the board on May 27 to concentrate on his "personal legal affairs."
Despite his legal troubles, Kwon remains the majority shareholder of Terraform Labs, owning 92% of the company's shares.
Kwon even continued to manage Terraform Labs remotely after disappearing from the public eye for six months prior to his arrest.
The U.S. Securities and Exchange Commission (SEC) filed a civil fraud lawsuit against Terraform Labs and Kwon in February, alleging that they misled investors in TerraUSD and Luna.
The company's legal team has attempted to have the lawsuit dismissed, arguing that the SEC overstepped its jurisdiction.
Kwon denies the fraud allegations.
"We wish [Kwon] the best and we hope that he's able to clear himself of all charges," Amani said. "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."
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