Terraform Labs to restrict access to US, withdraws $23 million in liquidity after SEC decision

Terraform Labs (TFL) announced changes to its operations on April 25 in light of a recent court ruling related to the Securities and Exchange Commission case against the company.

TFL said it expects to obtain an injunction soon barring it from carrying out certain activities in the United States. The company added that it will prepare for the injunction by blocking US users from accessing certain products and features starting the week of April 28.

TFL described the development as "frustrating" and said it was "against geo-blocking as a matter of principle" but had no choice but to adapt.

The policy change will not affect some projects, including Alliance, the open source Cosmos SDK module, and the Terra blockchain itself.

♦️Liquidity closures

TFL must also withdraw liquidity from positions on various platforms due to the injunction. The company said it will start withdrawing liquidity worth $23.8 million across three platforms – Astroport, Ura and White Whale – on April 26. Each center is a pair of LUNA

Terraform Labs said it will store withdrawn LUNA tokens in a multisig account during bankruptcy proceedings.

♦️ SEC requested injunctions The SEC filed charges against Terraform Labs in February 2023 and the trial began #LUNA✅