Luna Foundation blames litigations for non-distribution of assets to Terra holders Luna Foundation blames litigations for non-distribution of assets to Terra holders
LFG reiterated that its goal is to distribute its remaining assets to small $UST holders.
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Updated: Oct. 7, 2022 at 7:48 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Luna Foundation Guard (LFG) tweeted Oct. 7 that its effort to distribute the remaining assets of the failed Terra ecosystem to the token holders has been frozen due to ongoing litigations.
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
The Foundation stated that it would be unable to carry out the distributions as planned for as long as “these matters are outstanding.”
LFG reiterated that its goal “remains to distribute LFG’s remaining assets to small $UST holders.”
Excuses.
May 9 – UST depeg
May 16 (7 days) – LFG commits to small holder refund
May 28 (19 days) – You launch an entire new blockchain & conduct a mass LUNA drop
June 21 (43 days) – First Terra lawsuit is filedYou had loads of time to do a simple USDC airdrop. Why didn't you?
— FatMan (@FatManTerra) October 7, 2022
Fatman Terra, however, tweeted that the Foundation was only making excuses. According to him, there was a 43 days gap between when the stablecoin de-pegged and when the first lawsuit was filed against Terra. He stated that the Foundation “had loads of time to do a simple USDC airdrop.”
Luna Foundation had spent almost all its Bitcoin (BTC) reserve to defend UST’s peg. According to the Foundation’s dashboard, its reserve is left with $105 million, with its Bitcoin reserve worth $6.13 million.
Meanwhile, a member of the 5-man council Jonathan Caras, in May, said Do Kwon did not reach out to the council since UST’s crash.
Recently, South Korean authorities began canceling Do Kwon’s passport. A South Korean District Court later denied the arrest warrant for his aide Yoo Mo.
Terraform Labs had described South Korea’s arrest warrant for Kwon as “unfair.”
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Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems.
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Terraform Labs is a startup that created Terra, a blockchain protocol and payment platform used for algorithmic stablecoins.
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Do Kwon began his professional journey as an engineer, contributing to tech giants Apple and Microsoft.