The Luna Foundation Guard (LFG), a non-profit organization founded to Terra LUNA/USD System, has said it was unable to repay smallholders on its collapsed stablecoin due to ongoing legal battles.
1/ Since the $UST deprecation in May, there has been understandable interest in LFG’s assets and how they will be distributed. As previously mentioned, our goal is to distribute LFG’s remaining assets first to those affected by the deprecation, namely the smallest holders. https://t.co/VOTQDkQZ90
— LFG | Luna Foundation Guard (@LFG_org) October 7, 2022
“Unfortunately, due to ongoing and impending litigation, distribution is not possible. While these matters are still open, no timeline can be set for resolution,” LFG said in the Twitter announcement.
In early May, LFG pledged to use its remaining holdings to compensate small UST holders.
“The foundation wants theirs remaining assets to compensate remaining users of UST, smallest holder first. We are still discussing different distribution methods; Updates are coming soon,” he added.
After LFG’s announcement, people reacted to the intention to distribute the funds.
Excuses.
May 9th – UST Depeg
May 16 (7 days) – LFG commits to refunds for small owners
May 28 (19 days) – You launch a whole new blockchain and perform a mass LUNA drop
June 21 (43 days) – The first Terra lawsuit is filedThey had plenty of time to do a simple USDC airdrop. Why didn `t you?
— FatMan (@FatManTerra) October 7, 2022
Also read: Terra founder Do Kwon says he’s not ‘on the run’ Singapore police say he’s gone
However, LFG has stated that it still intends to refund UST holders.
In September, LFG reportedly moved 3,313 Bitcoin BTC/USDtotaling more than $69 million, across two cryptocurrency exchanges outside of South Korea.
But South Korean authorities have been able to freeze some of the transferred bitcoin since the alleged transfer.
Do kwonFounder of the collapsed Krypto-Terra, became an international…
