Three members of Terraform Labs legal department resigned following the collapse of the algorithmic stablecoin TerraUSD (UST) and the LUNA token. The Block writes about this, citing a source.

According to the interlocutor, a third-party expert is now dealing with legal issues.

The publication marks the departure of Terraform Labs General Counsel Mark Goldich, General Counsel Lawrence Florio, and Chief Litigation and Regulatory Attorney Noah Exler. According to their LinkedIn profile, they left the project in May, less than a year later.

“The past week has been a rough week for Terraform Labs, with few team members leaving in recent days. The vast majority of employees remain firmly committed to the mission of the project,” a company spokesperson told the publication.

Goldich, Florio, and Exler did not comment on their departure from Terraform Labs.

One Twitter user suggested that the lawyers’ possible dismissal was due to concerns about stable payrolls.

the lawyers don’t talk about it, they just know that Terra has no money to pay them lol

— Shmebulok (@CryptoShmebulok) 17 May 2022

According to another member of the community, the team supposedly “saw something they couldn’t handle”.

Terraform labs’ legal team may have seen something they couldn’t handle and they quit. Terraform attorneys Marc Goldich, Lawrence Florio, and Noah Axler have already updated their resignations on LinkedIn. Did Kwon make people lose a lot of money and everyone won’t let him go?

— TajoCrypto (@TajoCrypto) 17 May 2022

UST and LUNA prices started falling on May 10. This happened against the background of the exit of assets from the Anchor protocol as the rate of return on deposits dropped to 17.87%. As a result, as early as May 8, the “stablecoin” briefly lost its peg against the dollar.

The decline continued on May 11 and was followed by the LUNA algorithmic stablecoin, which dropped to $0.3. At the time of writing, the token is worth ~$0.00018, UST is worth around $0.09 (CoinGecko).

Earlier, Terraform Labs CEO Do Kwon suggested a hard fork of the network. Voting will take place on May 18.

The results of the preliminary survey showed that the majority of the community members did not support the idea. The success of the hard fork was also questioned by Binance chairman Changpeng Zhao.

The initiative did not affect asset prices either. LUNA and UST fell to their current lows after the release of the Luna Foundation Guardians’ report on the state of the reserves. The organization reported that it spent nearly all of its more than $3 billion worth of funds on a failed asset recovery.

Recall that in May the media learned of the South Korean party “People’s Power” representative Yun Chang-hyun’s call to hold parliamentary sessions with the participation of Do Kwon on the collapse of the Terra ecosystem.