Terra’s $2.8B Defense System — Luna Foundation Guard Audit Says Group Spent More Than 80,000 Bitcoin Defending UST Peg

Months aft the illness of Terra’s U.S. dollar-pegged token UST, the enactment created to support the once-stable coin, the Luna Foundation Guard (LFG), published an audit study audited by the New York-based consultancy institution JS Held. According to the report, LFG claims to person spent 80,081 bitcoin and 49.8 cardinal stablecoins, which adhd up to astir $2.8 cardinal to support UST’s peg.

LFG Audit by JS Held Claims Group Defended UST Peg With $2.8 Billion successful Crypto Assets

On Nov. 16, 2022, months aft the mid-May Terra stablecoin depegging event, the Luna Foundation Guard (LFG) published a blog post concerning an audited transparency study that claims the enactment spent $2.8 cardinal successful crypto assets defending UST. The erstwhile unchangeable coin UST is present called terrausd classical (USTC), and it’s presently trading for $0.02 per portion connected Nov. 16, 2022.

Terraform Labs co-founder Do Kwon besides tweeted astir the audit connected Wednesday. “A third-party audit of LFG and TFL’s peg defence enactment during May 2022 has been published,” Kwon tweeted. Terra’s co-creator further added:

Many of you mislaid a batch of wealth successful UST — for this I americium sorry. While the strategy was transparent and unfastened source, I arsenic its creator should person understood and communicated its risks better.

In the study published by the LFG, it says that the technical audit was done by the New York steadfast JS Held. It defends some LFG’s and Terraform Labs’ (TFL) actions during the UST depegging event. “LFG spent ~$2.8B (80,081 BTC and 49.8M successful stablecoins) to support UST’s peg, accordant with LFG’s tweets connected May 16th, 2022,” LFG’s blog station says. “Additionally, TFL went supra and beyond and spent $613M of its ain superior to support UST peg.”

“We relied upon assorted types of quantitative and qualitative information, including onchain data; TFL and LFG trading records JSH obtained straight from the exchanges; and consultations with the TFL business,” JS Held’s audit explains. The study besides details that TFL maintained accounts connected Binance that held BTC, ETH, BNB, USDT, BUSD, LUNA, and UST astir May 8, 2022.

LFG says the audit dispels immoderate allegations similar embezzlement oregon misuse of funds, helping insiders, oregon that the LFG funds were frozen by instrumentality enforcement. “The study shows that each LFG funds were spent to support UST’s peg parity with the dollar arsenic declared, and that LFG’s remaining balances are the lone funds remaining,” LFG said connected Wednesday.

Just precocious it was reported that Terraform Labs co-founder, Daniel Shin (Shin Hyun-seung), had his concern Chia Corporation raided this week implicit connections with TFL and “unfair commercialized practices.” Other reports stemming from South Korea’s section media person elaborate that the much vocal Terralabs co-founder, Do Kwon, is allegedly hiding retired successful Europe.

What bash you deliberation astir LFG’s audit that says the enactment spent much than 80,000 bitcoin defending UST’s peg? Let america cognize what you deliberation astir this taxable successful the comments conception below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This nonfiction is for informational purposes only. It is not a nonstop connection oregon solicitation of an connection to bargain oregon sell, oregon a proposal oregon endorsement of immoderate products, services, oregon companies. Bitcoin.com does not supply investment, tax, legal, oregon accounting advice. Neither the institution nor the writer is responsible, straight oregon indirectly, for immoderate harm oregon nonaccomplishment caused oregon alleged to beryllium caused by oregon successful transportation with the usage of oregon reliance connected immoderate content, goods oregon services mentioned successful this article.