Terraform Labs, a blockchain startup, is closing down following a settlement with the SEC, according to CEO Chris Amani.

Amani revealed the decision on social media platform X, stating that the firm had always intended to wind down operations.

Despite losing the legal battle, Amani expressed pride in maintaining the company and its ecosystem while continuing to innovate.

The announcement marks the end of an era for Terraform Labs, which faced significant challenges amid regulatory scrutiny.

Although Terra's ecosystem continues with decentralised applications and tokens, the value of its cryptocurrency tokens has sharply declined.

LUNA 2.0, meant to replace LUNA (CRYPTO:LUNA), saw a staggering 97% drop in value, and Terra's defi protocols now secure only $5.37 million, ranking 107th in blockchain value locked.