- Terraform Labs’ non-profit organization LFG announces methods to secure its crypto holdings.
- The firm recently made a settlement of $4.7 billion in its case against the SEC.
The Luna Foundation Guard (LFG) announced the movement of its crypto holdings to a direct custody solution, citing “safety” measures. LFG is the non-profit organization of Terraform Labs, the firm that recently made a settlement in a legal battle with the SEC.
Terraform Labs and its founder Do Kwon were charged by the SEC on allegations of fraud. The firm, at the beginning of June, settled for $4.47 billion to bring the charges to an end. However, the recent settlement has put a dent in Terraform Labs’s market sentiment as it becomes an additional negative publicity for the organization.
Moreover, in January 2024, Terraform Labs had asked for bankruptcy protection. Connectedly, the recent movement has instigated speculations among investors as they fear the loss of funds. Notably, the company is also expected to wind down businesses as it pays the fines imposed by the SEC.
As a part of it, the blockchain protocol firm has announced the selling of multiple projects in the past month including Pulsar Finance, Station Wallet, and Enterprise Protocol. Pulsar Finance is a portfolio manager while Station Wallet is the company’s cross-chain wallet. The Enterprise Protocol is Terraform Labs community’s DAO.
Terraform Labs Non-Profit LFG’s Crypto Holdings
In an X post, LFG outlined its crypto holdings under different addresses. The non-profit organization holds 313 BTC, worth nearly $19.10 million at current prices, in a Bitcoin address identified as ‘bc1q9’. Additionally, the platform also holds other cryptocurrencies.
Notably, it holds 1.19 million AVAX, 32.97 UST, 39.50K BNB, and 222.71 million LUNA. LFG, in the past month has exhibited several large transfers from the firm to unknown wallets. Additionally two of its tokens, LUNC and USTC were removed from circulating supply towards the end of May.
Amidst the SEC settlement, Terra ecosystem’s tokens LUNA, LUNC and USTC witnessed price drops. According to CMC data, Terra (LUNA), at the time of writing, traded at $0.4256 with a 30% price decline over the month. While Terra Classic (LUNC) traded at $0.00008078 with a 28.85% monthly decline. On the other hand, TerraClassicUSD (USTC) traded at $0.01773 having experienced a monthly decline of 22.46%.
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