Terraform Labs (TFL) announced operational changes on April 25 following a recent court ruling regarding the SEC’s case against the company. TFL anticipates a conduct injunction soon, prompting it to restrict access to certain products for US users starting April 28.

Despite finding this approach frustrating and against their principles, TFL must adapt. However, this policy change won't affect some projects like Alliance and the Terra blockchain. Additionally, TFL must withdraw liquidity worth $23.8 million from various platforms due to the injunction, storing the withdrawn LUNA tokens in a multisig account.

The SEC's charges against Terraform Labs, which began in February 2023, led to the recent developments, including monetary fines and penalties totaling $5.3 billion. Despite challenges, Terraform Labs persists in operating and offering select products amidst its bankruptcy and the depegging of its stablecoin, TerraUSD, from the dollar in May 2022.