- A total of roughly $3.4 billion was allegedly spent by LFG and TFL to protect the UST peg.
- In addition, Terraform Labs invested $613 million more to preserve the peg.
In order to give complete transparency regarding assets and attempts to repeg TerraUSD (UST), the nonprofit organization Luna Foundation Guard (LFG) that manages the UST algorithmic stablecoin issued a technical audit. LFG seeks to address all claims involving misused money, insiders, holdings cash in other wallets, and monies blocked. A total of roughly $3.4 billion was allegedly spent by LFG and TFL to protect the UST peg, according to the report.
On November 16th, the Luna Foundation Guard tweeted the results of a technical audit conducted by JS Held. The audit found that between May 8-12, LFG spent about $2.8 billion to protect the TerraUSD (UST) peg. That includes 49.8 million stablecoins and 80,081 BTC.
No Embezzlement of LFG Funds
In addition, Terraform Labs invested $613 million more to preserve the peg. According to the report, LFG used all available cash to keep the UST’s exchange rate stable.
LFG had planned to increase its Bitcoin reserves to $10 billion, making it the second-largest holder of Bitcoin. During times of significant market volatility, the UST peg was threatened by a rapid drop of over $2.5 billion. It had a $60 billion devastating effect on the lives of crypto investors.
Moreover, the Luna Foundation Guard also attempts to address claims against it. It claims there was no embezzlement of LFG funds, no favoritism for insiders, and no hiding of money in other accounts. As of May 16, all funds have been safely stored in self-hosted wallets.
Terra’s founder, Do Kwon, asserts that their scenario is unique compared to previous flops in the crypto industry. He also brought up the FTX episode, in which the company’s owners misappropriated funds from its customers.
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