Luna Foundation Guard Shares Update on Distribution of Remaining Assets

Luna Foundation Guard, LFG, a nonprofit organization created specifically to support the Terra ecosystem, has shared a follow-up update on the distribution of its remaining assets to those impacted by the UST depeg.

1/ Since $UST’s depeg in May, there has been understandable interest in LFG’s assets and how they will be distributed. As mentioned, our goal is to distribute LFG’s remaining assets to those impacted by the depeg, smallest holders first. https://t.co/VOTQDkQZ90

— LFG | Luna Foundation Guard (@LFG_org) October 7, 2022

LFG says that due to ongoing and threatened litigation, the distribution would not be possible at the moment. It mentions that its goal is to distribute LFG’s remaining assets to those impacted by the depeg, smallest holders first, but the question remains when.

LFG claims that while matters remain outstanding, there can be no timeline established for resolution. This somewhat dashes the hopes of the UST holders who had looked forward to the distribution ever since the LFG first disclosed its original plan in May.

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Shortly after the depeg event in May, the Foundation announced it was looking to use its remaining assets to compensate the remaining users of UST, the smallest holders first. Then it stated it was debating various distribution methods and updates to follow soon.

Back then, the Foundation disclosed its remaining reserves 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). No further updates have been provided on the state of the remaining assets since then, although it recently reacted to allegations of 3,313 BTC moved by Do Kwon.

South Korean prosecutors had alleged that 3,313 bitcoins were moved from KuCoin and OKX exchanges by a TFL wallet. The Terra founder, Do Kwon, was said to have created a new LFG wallet shortly after being slapped with an arrest warrant.

However, Luna Foundation Guard denied the allegation, stating it has not created any new wallets or moved BTC or other tokens held by LFG since May 2022.

Do Kwon also denied the freezing of over $40 million of his assets in two exchanges by South Korean prosecutors.