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According to the Luna Foundation Guard the third-party audit dispels the allegations that Terraform Labs founder Do Kwon misused or embezzled funds.
Key TakeawaysA third-party audit of Luna Foundation Guard has been released.
According to the report, LFG used $2.8 billion of its funds to try and stabilize UST’s peg in may.
Although the audit appears to be credible, Korean prosecutors claim they have frozen funds embezzled from Terra figurehead Do Kwon.
Share this article LFG releases auditThe Luna Foundation Guard is trying clear its name. The Terra-linked organization was established in January to defend the dollar peg of the now defunct TerraUSD (UST). An audit by accounting firm JS Held has been released. According to the audit, LFG claimed that it spent all its Bitcoin reserves and cash in an attempt to defend UST’s peg. This contrasts widely held speculation that Do Kwon, Terraform Labs founder, had taken a portion of LFG’s funds during UST’s collapse. According to the audit, LFG spent $2.8 billion to defend UST’s Peg. This included 80,081 Bitcoin and $49.8 Million in stablecoins. LFG made this claim on Twitter on May 16. The audit also states that Terraform Labs spent $613 million more of its own capital to defend the algorithmic stability coin’s peg. Terraform Labs developed and issued UST, an algorithmic stablecoin. The 20% yield that UST holders could earn by depositing it in Terraform Labs Anchor Protocol, a Terraform Labs-issued stablecoin, helped it gain popularity. Unlike other reserve-backed stablecoins like USDC and BUSD, UST was algorithmically pegged to the US dollar. UST lost its peg on May 8 due to insufficient collateral. This caused it to spiral downwards, erasing more than $40 billion in crypto market value. Kwon’s inability to sustain UST’s peg mechanism, and his irresponsible promotion that the stablecoin was a “risk-free asset”, have been widely criticized. LFG announced its third-party audit. It claims that all funds were used to defend UST’s dollar peg as it was declared. The remaining balances of the LFG funds are the only remaining funds. LFG also claims that the audit shows that no LFG funds were misused or embezzled by law enforcement. In September, South Korean prosecutors requested that assets deposited to central exchanges that were connected to the Luna Foundation Guard be frozen. Seoul’s Southern District Prosecutors Office claimed that LFG transferred funds to KuCoin, OKX and other centralized exchanges on September 15, one day after Seoul’s court issued a warrant for Kwon’s arrest. OXT Research member Ergo BTC and CryptoQuant, a crypto research firm, also claimed that the funds were LFG. KuCoin has so far reportedly accepted the prosecutor’s request to freeze the LFG assets. OKX, however, has remained silent. If these claims are true, it would imply that an unidentified entity associated with Do Kwon or Terra has access to more than $140 million worth of Bitcoin. Although prosecutors seem to believe that these funds are linked, not everyone is convinced. There is no solid proof that Terraform Labs or Kwon have any control over the coins. He stated that he doesn’t use Kucoin or OkEx and has no time to trade. No funds had been frozen. “I don’t know who their funds are, but I’m happy for them. KuCoin would likely be subject to complaints from large whales if Kwon is honest and the $140 million worth Bitcoin doesn’t belong to him. Kwon may be hiding the involvement of his or LFG, as no one has spoken out. JS Held, the third-party auditor for LFG, seems to be a reputable business. It is unlikely that it would risk its reputation to cover up illegal activity and embezzle funds. It’s becoming increasingly unlikely that the $140million in question isn’t connected to Terraform Labs or Kwon, but Terra may be more difficult to convince. Kwon may never face trial, if ever. Kwon is believed to have fled Singapore for Europe, but maintains that he’s not in hiding. Kwon is unlikely to win back trust in the crypto community anytime soon, regardless of whether the audit was legitimate. Disclosure: The author was a owner of ETH, BTC and other crypto assets at the time this article was written. Share this article. The information found on this website or accessed through it is obtained from independent sources that we believe are accurate and reliable. However, Decentral Media, Inc. does not make any representations or warranties as to the timeliness, completeness, accuracy or timeliness of any information found on this website or accessed via it. Decentral Media, Inc. does not act as an investment advisor. We do not provide personalized investment advice or any other financial advice. This website’s information is subject to change at any time. The information on this website could become obsolete or incorrect. You may not be able to update any information that is outdated, incomplete or inaccurate. We also reserve the right to change any information that is incorrect, incomplete or outdated. If you need investment advice about an ICO, IEO or other investment, we strongly recommend that you consult a licensed financial advisor or other qualified financial professional. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.See full terms and conditions.Recommended News