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Technical audit on November 9 report A report filed by JS Held reveals that the Luna Foundation Guard spent $2.8 billion to defend the UST’s peg between May 8th and May 12th.
1/ Today, LFG releases a technical audit report conducted by JS Held, an experienced third-party audit firm, to protect transactions, blockchain records, and the price of the Tera US Dollar ($UST). and full transparency about TFL’s commitments. May 8 and May 12, 2022.
LFG | Luna Foundation Guard (@LFG_org) November 16, 2022
According to reports, Terraform Labs also spent $613 million in capital to defend its UST peg.
JS Held wrote that the LFG’s May 16 tweet about the defense operation was accurate except for certain tweets based on estimates.
According to the foundation Dashboardwith its reserves of $83.93 million and Bitcoin’s reserves of $5.24 million.
The auditor concluded that:
UST was trading at such a low price that UST holders were trying to arbitrage by exchanging 1 UST for 1 dollar worth of LUNA. LUNA was created.As the price of LUNA was also falling, all UST holders who tried to exchange their UST for LUNA caused a sharp increase in LUNA supply. Together with these factors, the price of LUNA has fallen even further.
The Luna Foundation said the investigation dispelled rumors that the funds were misappropriated or used for insider profit.
According to the Foundation, all Peg Defense activities were conducted on the open market and did not favor any particular party.
The foundation also writes that its funds have not been frozen. They are stored in a self-hosted wallet that has not been moved since May 16, he added.
Do Kwon, founder of the failed stablecoin, said:
There have been multiple failures in cryptocurrency recently, with Terra and Terra where a transparent, open-source decentralized stablecoin failed to maintain peg parity and its creators spent their own capital to protect it. , it is important to distinguish between centralized failures: custody platforms where operators misused other people’s money (customer funds) for financial gain.“
Do Kwon, alongside Luna Foundation and Terraform Labs, now faces regulatory scrutiny across multiple jurisdictions. Kwon’s whereabouts are unknown and are listed in Interpol’s Red Notice of His.
