Forbes India 30 Under 30 2023

Luna Foundation Guard said that it is 'not possible at this time' to distribute the assets

LFG stated that it could not disperse its remaining assets to UST users, starting with the smallest Holders, due to pending and potential litigation

Shashank Bhardwaj
Published: Oct 10, 2022 07:29:33 PM IST

Luna Foundation Guard said that it is 'not possible at this time' to distribute the assetsImage: Shutterstock

Following the stablecoin Terra USD's depegging from the dollar, the Luna Foundation Guard, or LFG, a fund devoted to the Terra ecosystem, has stated that it cannot establish a schedule for the distribution of assets to users.

In a post on Twitter on October 7, LFG stated that it could not disperse its remaining assets to UST customers, starting with the smallest Holders, because of 'ongoing and threatened litigation.' Before the market decline in May, the fund's reserves included more than $4 billion in assets; at the time of publication, this sum had decreased to about $105 million.

The fund stated that distribution "is not currently feasible." It further added, "There can be no deadline set for settlement while these issues are outstanding. We won't stop promoting our ability to carry out these early plans, and those who are watching will be the first to learn about any updates."

Crypto Twitter users who responded to the announcement criticized the fund for delaying the payment of compensation, and Terra co-founder Do Kwon for his suspected role in the failure.

Following the ecological collapse, South Korean authorities have pursued a case against Kwon and Terra's colleagues. A South Korean court gave Kwon an arrest order in September, and Interpol then added his name to its Red Notice list. Kwon claimed on Twitter that he was 'making zero attempts to hide' at the time of publishing, while it was unclear where he was at the time.

The Foundation revealed its remaining reserves at the time to be 313 BTC, 39,914 BNB tokens, 1,973,554 AVAX, 1,847,079,725 UST, and 222,713,007 LUNA (of which 221,021,746 were staked with validators). There have been no further updates on the status of the remaining assets since then, though it has recently responded to allegations of 3,313 BTC moved by Do Kwon.

Yoo Mo, the director of business operations at Terraform Labs, was detained in South Korea after prosecutors on October 5 issued an arrest order for him. A court reportedly later rejected the case. Kwon was also given a deadline of October 20 by the South Korean Ministry of Foreign Affairs to give up his passport or face the possibility of it being nullified and not being reissued.

The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash

Check out our Festive offers upto Rs.1000/- off website prices on subscriptions + Gift card worth Rs 500/- from Eatbetterco.com. Click here to know more.

Post Your Comment
Required
Required, will not be published
All comments are moderated
Over 12,000 Brazil companies declare crypto holdings setting a new record for declarations
TCS Q2 FY23: $8.1 bln order book, sequential revenue growth of 1.43 percent, attrition at 21.5 percent