Luna Foundation moves $95 million in crypto to new wallet citing enhanced security Luna Foundation moves $95 million in crypto to new wallet citing enhanced security
Luna Foundation still holds around $161 million worth of digital assets in its reserves.
1 min read
Updated: May. 31, 2024 at 11:42 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The Luna Foundation Guard (LFG) has transferred approximately $95 million in crypto to a new wallet, aligning with recent plans to enhance fund security.
On-chain data from blockchain Arkham Intelligence showed that the Foundation shifted 1.974 million Avalanche’s AVAX token, valued at $71.2 million, and 39,500 BNB, approximately $23.5 million, to a new address identified as “0x13463Aab3ECcE77Cfd8Cc28fA498a5F9DB242e27” earlier today, May 31. The wallet received its initial test transactions from the Foundation on May 17.
Despite these transfers, LFG’s reserve dashboard shows that the foundation still holds approximately $161 million. This includes $71.36 million in AVAX, $45 million in UST, $23.38 million in BNB, and about $21 million in BTC, among other assets.
LFG is a non-profit organization focused on the Terra ecosystem. In 2022, the Foundation was intensely scrutinized for its Bitcoin transactions during Terra’s algorithmic stablecoin UST crash.
Why did the Luna Foundation make the transfers?
In a May 28 social media post, LFG said it was moving some assets in its multi-sig wallets to a more secure direct custody solution. It stated:
“To enhance security of LFG funds, LFG is set to transition assets held in LFG multi-sig wallets to a robust direct custody solution in the coming days.”
So, the new transactions follow the announcement and involve the wallet the Foundation previously stated.
Meanwhile, this development follows the reported agreement between the US Securities and Exchange Commission (SEC), bankrupt Terraform Labs, and its former CEO, Do Kwon.
While details of the settlement remain sketchy as of press time, Judge Jed Rakoff has asked both the financial regulator and the defendants to submit supporting documents by June 12. In April, a US District Court for the Southern District of New York found the defunct company and its founder, Kwon, guilty of civil fraud.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems.
Bitcoin
$97,288.51
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Avalanche
$39.7220
Avalanche is an umbrella platform for launching decentralized finance (DeFi) applications, financial assets, trading and other services.
Luna Foundation Guard
LFG is dedicated to supporting a vibrant community of blockchain innovators committed to developing a decentralized global economy.
Terraform Labs
Terraform Labs is a startup that created Terra, a blockchain protocol and payment platform used for algorithmic stablecoins.
Do Kwon began his professional journey as an engineer, contributing to tech giants Apple and Microsoft.