Luna Foundation Guard Moving Crypto Holdings, What's Happening?

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Luna Foundation Guard Moving Crypto Holdings, What’s Happening? – Crypto News

Published

2 years ago

June 25, 2024

Dripp

Luna Foundation Guard, the non-profit linked to Terraform Labs, on Tuesday said it moved the crypto holdings in its wallets to a direct custody solution. The move comes following a settlement with the U.S. Securities and Exchange Commission (SEC) by Terraform Labs and Do Kwon to pay $4.5 billion in total penalties in the civil fraud case.

Luna Foundation Guard (LFG) Shifts Funds

Terra-linked Luna Foundation Guard (LFG) shifts funds including Bitcoin to a direct custody solution, the nonprofit announced in a post on X platform on June 25. This has sparked concerns among crypto investors as Terraform Lab, which is currently under bankruptcy protection, winding down businesses and assets to pay $4.5 billion as part of the settlement with the U.S. SEC.

LFG claims direct custody of crypto assets such as AVAX, BNB, BTC, LUNA, and UST (now USTC) will help improve the security of funds in the wallets. CoinGape recently revealed that LFG shifted a whopping $94.7 million in crypto holdings to a new address. It transferred 1.974 million AVAX worth $71.19 million and 39,499 BNB approximately $23.5 million.

The LFG Reserves Dashboard is established to track funds available in LFG-linked wallet addresses for continued transparency and traceability. The total reserve balance is $124.36 million, with Bitcoin holdings of $19.13 million. It has Avalanche (AVAX) worth $49.71 million and BNB worth $32.87 million.

Terraform Labs CEO Chris Amani recently confirmed burning LUNA holdings in wallets related to TFL and LFG. Terra Luna Classic community will also burn LUNC and USTC in the wallets.

Also Read: Bitcoin ETFs Continue To Bleed With Zero Inflows, Institutions In Panic?

TFL Sells Major Crypto Projects

TFL CEO Chris Amani after the settlement with the SEC revealed that it’s products will continue to run while they wind down. The company has put Pulsar Finance, Station Wallet, and Enterprise Protocol for selling.

Prices of crypto assets held by the company have dropped immensely due to concerns over selloff and overall negative sentiment in the crypto market. AVAX price has dropped 34% in a month, while LUNA and USTC also fell over 30% and 20%, respectively.

Also Read: Altcoins Bounce Back With BTC Dominance Dropping, Is the Bottom In?

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