Terraform Labs will prohibit access for U.S. users and withdraw $23.8 million in LUNA liquidity from three platforms

ChainCatcher news, according to Crypto Slate, reported that Terraform Labs (TFL) announced adjustments to its business following a court ruling by the U.S. SEC.

TFL stated that it expects to receive a cease-and-desist order soon, prohibiting it from engaging in certain activities in the U.S. The company added that it will prepare for the order by restricting U.S. users' access to certain products and features starting the week of April 28.

TFL described this development as "frustrating" and stated that it "principally opposes geo-blocking," but has no choice but to adapt. This policy change will not affect some projects, including Alliance (an open-source Cosmos SDK module) and the Terra blockchain itself.

Due to the order, TFL will also begin withdrawing $23.8 million worth of LUNA liquidity from three platforms (Astroport, Ura, and White Whale) starting April 26, and will store the withdrawn LUNA in a multi-signature account through bankruptcy proceedings.