Terraform Labs (TFL) is officially winding down following its settlement with the U.S. Securities and Exchange Commission (SEC). CEO Chris Amani, who succeeded Do Kwon, made the announcement on X platform on July 9, 2026, confirming that the blockchain firm would cease operations.
Settlement Triggers Final Shutdown
Amani stated that TFL always intended to dissolve at some point, and now is that moment. “We’ll be winding down operations completely,” he said. He thanked the “lunatics” who supported the company through the legal battle and the TFL team, expressing pride in holding the company and ecosystem together while continuing to innovate.
“We were well positioned to accelerate things if we had won the trial, but unfortunately we lost and as a result, can no longer operate,” Amani added.
LUNA 2.0 Plunges 97%, DeFi TVL Shrinks
The Terra ecosystem persists only modestly, supported by a handful of dApps and tokens. However, LUNA 2.0, the successor to the original LUNA, has crashed by 97%. In DeFi, Terra protocols now hold just $5.37 million in total value locked, ranking 107th among all blockchains.
The dissolution marks the final chapter for a once multibillion-dollar ecosystem. Terms of the SEC settlement remain partially undisclosed, but likely include substantial penalties.
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