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

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. According to 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 Assets

On Nov. 16, 2022, months after the mid-May Terra stablecoin depegging event, the Luna Foundation Guard (LFG) printed a blog post regarding an audited transparency report that claims the group spent $2.8 billion in crypto property defending UST. The as soon as steady coin UST is now referred to as terrausd classic (USTC), and it’s at present buying and selling for $0.02 per unit on Nov. 16, 2022.

Terraform Labs co-founder Do Kwon additionally tweeted concerning the audit on Wednesday. “A 3rd-party audit of LFG and TFL’s peg protection exercise throughout May 2022 has been printed,” Kwon tweeted. Terra’s co-creator additional added:

Many of you misplaced some huge cash in UST — for this I’m sorry. While the system was clear and open supply, I as its creator ought to have understood and communicated its dangers higher.

In the report printed by the LFG, it says that the technical audit was executed by the New York agency JS Held. It defends each LFG’s and Terraform Labs’ (TFL) actions through the UST depegging occasion. “LFG spent ~$2.8B (80,081 BTC and 49.8M in stablecoins) to defend UST’s peg, in step with LFG’s tweets on May sixteenth, 2022,” LFG’s weblog publish says. “Additionally, TFL went above and past and spent $613M of its personal capital to defend UST peg.”

“We relied upon varied kinds of quantitative and qualitative info, together with onchain knowledge; TFL and LFG buying and selling data JSH obtained immediately from the exchanges; and consultations with the TFL enterprise,” 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 May 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 reveals that every one LFG funds had been spent to defend UST’s peg parity with the greenback as declared, and that LFG’s remaining balances are the one funds remaining,” LFG stated on Wednesday.

Just not too long ago it was reported that Terraform Labs co-founder, Daniel Shin (Shin Hyun-seung), had his enterprise Chia Corporation raided this week over connections with TFL and “unfair commerce practices.” Other reports stemming from South Korea’s native media have detailed that the extra vocal Terralabs co-founder, Do Kwon, is allegedly hiding out in Europe.

What do you concentrate on LFG’s audit that claims the group spent greater than 80,000 bitcoin defending UST’s peg? Let us know what you concentrate on this topic within the feedback part under.