Terraform Labs to close services by October 30 without buyers

Terraform Labs announced it may discontinue several products and services by October 30 if no third parties assume control.

This decision follows the company's bankruptcy proceedings after settling with the United States Securities and Exchange Commission (SEC) in June.

On September 25, Terraform communicated on X that discussions with potential buyers were ongoing but not progressing as hoped.

The tweet served as a reminder to both the Terraform community and prospective buyers of the limited time to act.

Terraform specified four services and four products under consideration for takeover, including the Luna Foundation Guard, which is still led by Do Kwon.

Other services in discussion involve the blockchain explorer and its application programming interface (API) offerings.

CEO Chris Amani previously indicated on June 12 that after the SEC settlement, the company aimed to continue its operations, stating, “I’m incredibly proud that we were able to hold this company and ecosystem together.”

However, he acknowledged the challenges faced after the trial loss, which hindered further operations.

The community may play a crucial role in managing the network's responsibilities during the bankruptcy process.

Amani noted that “the community will need to take over ownership of the chain,” with indications that some development teams are interested in this transition.

In early September, Terraform had already shut down its Pisco testnet APIs as part of the bankruptcy strategy.

Pulsar Finance appears to have a potential buyer, as it was not included in the list of products up for sale.

Terraform filed for bankruptcy in January and settled with the SEC for $4.47 billion in penalties, disgorgement, and interest.

On September 20, a Delaware bankruptcy judge approved Terraform's bankruptcy plan, paving the way for these upcoming changes.