Crypto users react to Terraform Labs’ legal team allegedly leaving the company

The ongoing saga involving Terraform Labs, the blockchain developer behind Terra (LUNA), took a turn after many on the firm’s legal team allegedly changed employment status.

According to their LinkedIn profiles, Terraform Labs General Counsel Marc Goldich, Chief Litigation and Regulatory Counsel Noah Axler, and Chief Corporate Counsel Lawrence Florio retired from the blockchain firm in May 2022. Goldich started at Terraform Labs in August 2021, while Axler and Florio joined in January 2022.

The change in employment status of three members of Terraform Labs’ legal team followed major volatility in the crypto market after LUNA’s price plummeted to $0.00 in a two-week period. Stablecoins, including Tether (USDT), have been depegged from the US dollar, while TerraUSD (UST) price has fallen more than 88% since May 8.

Do Kwon, the co-founder of Terraform Labs, on Wednesday proposed a rescue plan in which the company’s team would mint more UST than usual. Validators for the Terra blockchain twice halted network activity amid extreme volatility, while Kwon later suggested users should vote to fork the Terra Luna blockchain to save the ecosystem, which appears to be still in a downward spiral.

Even before some of Terraform Labs’ lawyers appeared to cut ties with the firm, many crypto users, who are likely to face significant losses, called for legal action against Kwon. Other speculated Goldich, Axler and Florio’s potential departures could have been the result of a moral dilemma defending Terraform Labs or concerns about where their next paycheck would come from.

The Terraform Labs legal team may have seen something they couldn’t handle and therefore quit. Terraform attorneys Marc Goldich, Lawrence Florio and Noah Axler previously updated their resignations on LinkedIn. Do Kwon has made people lose a lot of money and not everyone is going to let it go

— Tajo Crypto (@TajoCrypto) May 17, 2022

Related: What happened? The Terra debacle exposes vulnerabilities plaguing the crypto industry

If their departure was due to concerns about the LUNA and UST crash, the legal team wouldn’t be the first players in the crypto space to abandon what appears to be a sinking ship. In December 2021, SushiSwap’s chief technical officer Joseph Delong resigned, citing “chaos” in the operations of the decentralized exchange.

Cointelegraph reached out to Marc Goldich, Noah Axler, and Lawrence Florio, but received no response at the time of publication.