- The TerraClassic community is urging Terraform Labs to provide transparency.
- Recent on-chain data reveals that billions of tokens were left untouched.
- A previous court order mandated the destruction of these tokens.
The TerraClassic community is standing strong, demanding transparency and accountability from Terraform Labs in the wake of the massive $40 billion collapse in 2022. Recent on-chain analysis unveiled substantial remaining assets, including billions in USTC and undisclosed LUNC, that were burnt or destroyed as per court orders.
As these assets remain reportedly untouched, it casts a shadow over the community-owned chain. This call for action gains more attention as it comes hot on the heels of Terraform Labs’ lawsuit against Jump Trading over allegations of market manipulation.
Terraform Labs Community on High Alert: Demands Transparency
In a recent X post, a TerraClassic community member has shared their concerns over the lack of transparency in the Terraform Labs ecosystem. The community is now calling for full closure and transparency, demanding that the platform disclose and burn all remaining assets.
According to recent analysis, billions of USTC, totalling around $2.8 billion, linked to Binance deposits during the crash, alongside undisclosed LUNC, remain untouched. The court order, following the SEC settlement and Terraform Labs bankruptcy proceedings, mandates the destruction of all assets for compliance and supply reduction.
Despite this court order, massive assets remain alive, as noted by the community member. This inaction casts a shadow over the community-owned chain, underscoring the need for full compliance and transparency. The LUNA holder noted,
“Wallets as mandated by the SEC settlement and bankruptcy proceedings—recent on-chain analysis has uncovered substantial remaining assets traceable to TFL flows.”
Further, the community member asserted that burning the remaining assets is a matter of accountability, not just regulatory compliance. It will reduce supply, strengthen fundamentals, and enable TerraClassic to move forward, unbothered by the past turmoil and legal issues. They added that it’s now Terraform Labs’ turn to “complete the severance,” as the community has already put efforts to rebuild and improve the ecosystem.
The influencer later urged the LUNC holders to pay critical attention to the matter as it would significantly impact their investments. They posited that by reducing supply, genuine revival potential could be unlocked, accelerating repeg efforts and utility builds. The Twitter post added,
“Transparency needed: Disclose remaining wallets/exchange holdings. Execute final burns IMMEDIATELY. Provide verifiable proof so community and exchanges can confirm.”
$4B Jump Trading Lawsuit
According to a Bloomberg report today, Terraform Labs’ court-appointed administrator has sued Jump Trading, seeking $4 billion in damages. The case targets Jump, its co-founder Willia, DiSomma, and former executive Kanav Kariya.
He alleges that the team was involved in illegal conduct that contributed to the largest collapse in history. Snyder claims that the lawsuit aims to hold Jump Trading accountable for its actions. The statement read,
“Jump Trading actively exploited the Terraform Labs ecosystem through manipulation, concealment, and self-dealing that enriched Jump while financially devastating thousands of unsuspecting investors.”
As per Snyder’s statement, Jump Trading had a secret arrangement with Terraform Labs before its collapse. Reportedly, Jump engaged in market manipulation by initially supporting it and soon abandoning it to reap substantial gains. A previous SEC filing revealed that the platform profited around $1 billion from selling the tokens, highlighting the significant financial gains made through these alleged actions.
