Here is what to know on compensation for small UST holders in wake of events
Luna Foundation Guard, LFGA non-profit organization created specifically to support the Terra ecosystem has shared a follow-up update on the distribution of its remaining assets to those affected by UST Depeg.
LFG says that due to ongoing and threatened litigation, the distribution would not be possible at the moment. It mentions that its goal is to distribute LFG’s remaining assets to those impacted by the depeg, smallest holders first, but the question remains when.
The LFG claims that though the cases are outstanding, no time frame can be prescribed for resolution. This somewhat dashed the hopes of UST holders, who had waited for delivery since LFG first revealed its original plans in May.
Shortly after the depeg event in May, the Foundation announced it was looking to use its remaining assets to compensate the remaining users of UST, the smallest holders first. Then it stated it was debating various distribution methods and updates to follow soon.
Subsequently, the Foundation disclosed its remaining reserves of 313 BTC, 39,914 BNB tokens, 1,973,554 AVAX, 1,847,079,725 UST and 222,713,007 LUNA (of which 221,021,746 were staked with validators). No further updates have been provided on the status of the remaining assets since then, although it recently reacted to allegations of 3,313 BTC being transferred by Do Kwon.
South Korean prosecutors had alleged that 3,313 bitcoins were moved from KuCoin and OKX exchanges by a TFL wallet. The Terra founder, Do Kwon, was said to have created a new LFG wallet shortly after being slapped with an arrest warrant.
However, the Luna Foundation Guard denied the allegation, saying it had not created any new wallets or transferred BTC or other tokens held by LFG since May 2022.
Do Kwon also denied the freezing of over $40 million of his assets in two exchanges by South Korean prosecutors.
