FunFact

Shortly after prop 12156 was rejected, a new prop has been submitted for deposit that would seek to "freeze" the terra coins in the LFG wallet(s). While this certainly seems safer than burning them, let's think through this a bit more together. 🧵

Hahaha. Fuck around and find out #TerraClassic You are potentially voting for the demise of the chain and everything on it. “Pertaining to the USTC that was ordered to be liquidated in this case, who currently has control of those funds?” In the case against Do Kwon and Terraform Labs (TFL) regarding the Terra and Luna crash, the USTC (TerraUSD Classic) funds ordered to be liquidated are part of the assets addressed in both the U.S. Securities and Exchange Commission (SEC) civil settlement and Terraform Labs' bankruptcy proceedings. As of the latest updates tied to the current date of February 19, 2025, here’s the situation regarding control of those funds: The U.S. District Court for the Southern District of New York approved a final consent judgment on June 12, 2024, in the SEC v. Terraform Labs PTE, Ltd. and Do Hyeong Kwon case. This judgment required Terraform Labs to wind down its operations and transfer its remaining assets—including any USTC it controlled—to the Terraform bankruptcy estate FOR LIQUIDATION AND DISTRIBUTION TO HARMED INVESTORS AND CREDITORS. This process is overseen by the U.S. Bankruptcy Court for the District of Delaware, where Terraform Labs filed a voluntary Chapter 11 petition on January 21, 2024. The bankruptcy estate is managed by a liquidating trust or estate representative, as stipulated in the settlement and the Chapter 11 plan. This entity, rather than Terraform Labs itself (which is no longer operational in a traditional sense), has control over the assets, including the approximately 992 million USTC tokens TFL reportedly owned, as noted in posts on X and asset schedules from the Delaware court. Additionally, the Luna Foundation Guard (LFG), a related entity, was also ordered to transfer its assets (including any USTC it held) to the same bankruptcy estate. The shuttle bridge, holding around 178 million USTC according to X posts, is similarly subject to this transfer process, though specific execution details may vary. The exact administration of these funds falls under the purview ofWeil, Gotshal & Manges LLP, Terraform’s bankruptcy counsel, which is facilitating the liquidation process. The firm has set up a contact point ([email protected]) for inquiries, and THE BANKRUPTCY COURT HAS YET TO FINALIZE PLANS FOR CLAIMS AND DISTRIBUTIONS, which will be posted on dm.epiq11.com/case/terraform… when approved. An Official Committee of Unsecured Creditors, represented by McDermott Will & Emery LLP (contactable at [email protected]), also plays a role in ensuring creditor and investor interests are addressed during this liquidation. Thus, as of now, THE TERRAFORM BANKRUPTCY ESTATE, managed through the Chapter 11 process in Delaware under court supervision, HAS CONTROL OF THE USTC FUNDS TO BE LIQUIDATED. This includes assets previously held by TFL and LFG, WITH THE GOAL OF DISTRIBUTING PROCEEDS TO THOSE HARMED by the Terra ecosystem collapse. The process is ongoing, and while plans exist to "burn" (remove from circulation) some of these tokens—as indicated by Terraform’s then-CEO Chris Amani in 2024—THE PRACTICAL EXECUTION AND FINAL CONTROL REST WITH THE BANKRUPTCY ESTATE’S ADMINISTRATORS