Over 1.2 billion dollars in bitcoin have gone missing from the Luna Foundation Guard’s vaults.
In a Nutshell
The Luna Foundation Guard amassed more than $2 billion in bitcoin reserves and provided a bitcoin loan of $750 million.
Despite LFG’s best efforts, more than $1.2 billion in bitcoin is still missing.
Luna Foundation Guard (LFG), a non-profit organisation that was made to help Terra’s ecosystem grow, hasn’t answered a very important question about its bitcoin reserves since Terra’s collapse.
Last weekend, Terra’s UST stablecoin showed the first signs of instability by falling from its dollar peg to $0.985. The Luna Foundation Guard (LFG), which is in charge of keeping Terra’s ecosystem healthy, voted to use $1.5 billion in Bitcoin and UST from reserves to re-peg UST to the U.S. dollar.
For a total of 70,736 bitcoins, worth more than $2 billion, as a “forex reserve” for Terra’s algorithmic stablecoin UST, which recently severely depegged and caused chaos in the crypto market.
Elliptic, a blockchain analytics platform, says that a Bitcoin address linked to LFG sent about $750 million worth of Bitcoin to a new address on Monday, hours after LFG announced the $1.5 billion loan. That night, more Bitcoin worth $930 million was sent from wallets connected to LFG to the same new address. This total of 52,189 Bitcoin, worth more than $1.6 billion, was then moved from the new address to a single account at Gemini.The transfer left LFG with 28,205 Bitcoin, which at the time was worth $875 million. The entire sum was transferred to a Binance account early on Tuesday morning.
There should still be over $1.2 billion worth of bitcoin in LFG’s reserves, based on this estimate. That money hasn’t been disclosed, however, by the organisation.
But whether those Gemini and Binance accounts were used to buy a large amount or Bitcoin is not clear at this time. There is no way to know if those massive sums of Bitcoin were sold or transferred to any other LFG wallets.
As a result of the devastation caused by the failure of UST and LUNA, many have begun to openly question Terra and Terra co-founder Do Kwon’s transparency in recent days.
UST was trading at $0.18 at the time of this writing and is considered to be worthless. Bitcoin, on the other hand, has returned to a price above $30,000 after a brief dip.
For more crypto news and insight follow me at → Abdul Rasheed
Contents distributed by Learn.Block6.tech
👉 Telegram — Fresh ideas
👉 Twitter — Latest articles
