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Terra vs. SEC: Terraform Labs to block US-based users amid ongoing legal developments  

By:
on Apr 26, 2024
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  • US users will not access some features and products from next week.
  • That comes as Terraform prepares to adhere to SEC’s likely conduct injunction.
  • LUNA gained more than 2% over the past day.

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Crypto firm Terraform Labs (LUNA) confirmed plans to block United States-based users after the recent SEC ruling.

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The decision comes as the blockchain company anticipates a looming court order (a conduct injunction) in the legal fight with the US SEC.

Terraform Labs did not disclose the details of the affected features and products, but it is clear the move is part of its compliance approach.

Terraform Labs blocking US users

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The blockchain firm revealed that it will modify active liquidity provisioning and access to its products and services in selected jurisdictions. The announcement read,

“As a result of the SEC case, TFL may receive a conduct injunction, which could prohibit TFL from engaging in certain activities. To prepare for this, TFL will be restricting access to some TFL products and features from users in the United States as of next week.”

Terraform Labs anticipates a potential conduct injunction – a court order to abandon some of its activities. TFL is restricting US users to prepare for this move.

While that remains against geoblocking principles, the crypto firm said it took the step due to the ongoing circumstances.

Source – X

The Securities & Exchange Commission sued Terraform and founder Do Kwon and asked for a $5.3 billion fine for the blockchain company’s involvement in the Terra ecosystem callable in 2022.

The proposed penalty further complicated Terraform Labs’ operational competencies.

Meanwhile, the latest policy adjustments will not impact projects like Alliance and Luna’s ecosystem.

LUNA price outlook

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The alt jumped 2.08% within the past day to trade at $0.6259. LUNA recovers from last weekly downturn, up 1.45% on its 7-day chart.

LUNA 1D Chart on Coinmarketcap

Ongoing legal developments and the broad markets sentiments will likely shape LUNA’s trajectory going forward.

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