Terra’s $2.8B Defense System — Luna Foundation Guard Audit Says Group Spent More Than 80,000 Bitcoin Defending UST Peg – Bitcoin News
Months after the collapse of Terra’s U.S. dollar-pegged token UST, the group created to guard the once-stable coin, the Luna Foundation Guard (LFG), printed an audit report audited by the New York-based consultancy firm JS Held. In keeping with the report, LFG claims to have spent 80,081 bitcoin and 49.8 million stablecoins, which add as much as roughly $2.8 billion to defend UST’s peg.
LFG Audit by JS Held Claims Group Defended UST Peg With $2.8 Billion in Crypto Property
On Nov. 16, 2022, months after the mid-Might Terra stablecoin depegging occasion, the Luna Foundation Guard (LFG) printed a blog post regarding an audited transparency report that claims the group spent $2.8 billion in crypto belongings defending UST. The as soon as steady coin UST is now referred to as terrausd classic (USTC), and it’s at the moment buying and selling for $0.02 per unit on Nov. 16, 2022.
Terrakind Labs co-founder Do Kwon additionally tweeted in regards to the audit on Wednesday. “A third-party audit of LFG and TFL’s peg defense activity during May 2022 has been published,” Kwon tweeted. Terra’s co-creator additional added:
Lots of you misplaced some huge cash in UST — for this I’m sorry. Whereas the system was clear and open supply, I as its creator ought to have understood and communicated its dangers higher.
Within the report printed by the LFG, it says that the technical audit was carried out by the New York agency JS Held. It defends each LFG’s and Terrakind Labs’ (TFL) actions throughout the UST depegging occasion. “LFG spent ~$2.8B (80,081 BTC and 49.8M in stablecoins) to defend UST’s peg, consistent with LFG’s tweets on May 16th, 2022,” LFG’s weblog publish says. “Additionally, TFL went above and beyond and spent $613M of its own capital to defend UST peg.”
“We relied upon various types of quantitative and qualitative information, including onchain data; TFL and LFG trading records JSH obtained directly from the exchanges; and consultations with the TFL business,” JS Held’s audit explains. The report additionally particulars that TFL maintained accounts on Binance that held BTC, ETH, BNB, USDT, BUSD, LUNA, and UST round Might 8, 2022.
LFG says the audit dispels any allegations like embezzlement or misuse of funds, serving to insiders, or that the LFG funds had been frozen by regulation enforcement. “The report shows that all LFG funds were spent to defend UST’s peg parity with the dollar as declared, and that LFG’s remaining balances are the only funds remaining,” LFG stated on Wednesday.
Only recently it was reported that Terrakind Labs co-founder, Daniel Shin (Shin Hyun-seung), had his enterprise Chia Company raided this week over connections with TFL and “unfair trade practices.” Different stories stemming from South Korea’s native media have detailed that the extra vocal Terralabs co-founder, Do Kwon, is allegedly hiding out in Europe.
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Jamie Redman
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