Legal Battles Are Preventing Crypto Payouts to UST Holders – Terra Backers

• LUNA Price at the time of writing – $2.51
• No timeline established for the resolution

The Luna Foundation Guard (LFG) explains why it has not reimbursed small TerraUSD (UST) holders for their losses. According to the LFG, a non-profit organization established to support the Terra (LUNA) ecosystem, ongoing legal battles have rendered it impractical to fulfill that promise for the time being.

There has been understandable interest in LFG’s assets and how they will be distributed since UST’s de-peg in May. As previously stated, our objective is to distribute LFG’s remaining assets to the affected parties, starting with the smallest holders.

Distribution is not possible at this time due to legal cases

Unfortunately, distribution is not possible at this time because of ongoing and threatened litigation. There is no timetable for resolving these issues while they are unresolved.

In May, roughly a week after the stablecoin failed, the organization made the initial promise to compensate small UST holders with its remaining holdings. The Foundation wants to use its remaining assets to pay the remaining UST users, starting with the smallest holders. 

They are still debating various distribution strategies; updates will be forthcoming.

Twitter has criticized the LFG for not dispersing the funds, but the organization says it will still reimburse holders of UST.

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Who are Terra’s founders?

Daniel Shin and Do Kwon set up Terra in January 2018. Through a focus on price stability and usability, the two envisioned the project as a means of accelerating the adoption of cryptocurrency and blockchain technology. Kwon assumed leadership of Terraform Labs, the company behind the game.

Shin co-founded and led the major South Korean e-commerce platform Ticket Monster, also known as TMON, prior to developing Terra. Later, he was a co-founder of Fast Track Asia, a startup incubator that helped entrepreneurs create fully operational businesses.

Kwon was the CEO of Anyfi, a company that developed decentralized wireless mesh networking solutions. 

Additionally, he has held software engineering positions with Apple and Microsoft.

Do Kwon announce a revival strategy following Terra Classic’s demise, which ultimately resulted in a hard fork between Terra and Terra? 

He received criticism for his plans from unhappy UST investors, the founder of Binance, Changpeng Zhao, and Vitalik Buterin. The community voted in favor of his proposal, and on May 27, 2022, Terra Classic was hard-forked into its new Terra blockchain.

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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