LFG Initiates Crypto Transfer Following Terraform Labs 45 Billion Settlement with SEC
Terraform Labs’ Luna Foundation Guard (LFG) has recently transferred its cryptocurrency holdings to a direct custody solution following a substantial settlement with the U.S. SEC, prompting speculation about the foundation’s financial strategies.
The move comes on the heels of Terraform Labs and co-founder Do Kwon settling a civil fraud case with the SEC, resulting in a combined $4.5 billion in penalties. This has prompted LFG to take proactive measures to safeguard its crypto assets.
On June 25, The Luna Foundation Guard reportedly moved a significant amount of cryptocurrency, including Bitcoin, to a direct custody solution to enhance the security of funds held in LFG wallets. This transfer included 1.974 million AVAX valued at $71.19 million and 39,499 BNB worth approximately $23.5 million.
To maintain transparency and trust, LFG has established a Reserves Dashboard to provide real-time tracking of the funds held in LFG-linked wallets, ensuring continued transparency and traceability.
The crypto market has responded negatively to these developments, with prices of assets held by Terraform Labs dropping significantly due to concerns over potential sell-offs and overall market sentiment. For example, AVAX has seen a 34% decline in a month, while LUNA and USTC have fallen by over 30% and 20%, respectively.
As of now, the total reserve balance stands at $124.36 million, with Bitcoin holdings valued at $19.13 million, Avalanche (AVAX) worth $49.71 million, and BNB worth $32.87 million.
In response to the SEC settlement, TFL CEO Chris Amani has initiated the sale of major projects like Pulsar Finance and Station Wallet while committing to continue operating its remaining products. This has coincided with significant drops in AVAX, LUNA, and USTC prices amid market uncertainties and concerns over potential selloff.
The article also covers the impact on Terraform Labs’ operations, and the tags “Altcoins” and “Bitcoin Left Behind! Is Ethereum the New Crypto King?” are also mentioned.