Luna Foundation Guard released an audit report, asserting that there was no "embezzlement" in the LUNA-UST crash
On the afternoon of November 16, 2022 (Vietnam time), Luna Foundation Guard (LFG) announced an audit audited by a third party, providing information on efforts to "save" UST during the UST depeg recovery. May this year.
Listen to this article
First, to have an overview of the Terra-UST incident, please read the article on the impact and damage that the Terra (LUNA) - UST "catastrophe" left to the crypto industry.
Next, there are two organizations mentioned here:
- Luna Foundation Guard (LFG) is the organization that manages and controls the escrow fund for stablecoin TerraUSD (UST);
- Terraform Labs (TFL) is the company that founded Terra and the ecosystem around this coin.
The main purpose of the audit is to “provide a transparent view of the UST depeg rescue effort, declare LFG assets in the May incident, and respond to misinformation that has been circulating in the community.”.
– LFG used $2.8 billion (including 80,081 BTC and $49.8 million in stablecoins) in an effort to prevent UST depeg. This number is exactly what the organization announced on twitter on May 16, 2022, as reported by FoxCryptoNews.
– TFL also spent 613 million USD from TFL's own fund to save the price of UST.
With such information, LFG asserts that the community has "put the wrong thing" about them:
- All asset funds are used to save the UST price;
- All depeg price rescue activities take place on the publicly traded market, and are not intended to benefit any individual or third party;
- Assets have all been held in the “same” wallets since the May tweet and have never been moved, nor frozen.
In addition, LFG's asset fund is 100% funded from TFL for the purpose of building a safe escrow fund for Terra stablecoins.
For the above reasons, the TFL concludes that:
“Although the number of assets in reserve is not enough to withstand the market's extreme price fluctuations, leading UST to continue to depeg, LFG is still trying to use all resources to save the situation."
Finally, LFG shared the lines of "heart letter" written by Do Kwon himself:
“Although there have been many recent failures in the crypto market, Terra's case is completely different. UST is a decentralized, transparent and open source stablecoin that failed to maintain the $1 peg but the founders have always tried to use all possible capital to save the price. So Terra is completely different from the failure of centralized custodial platforms – using user funds for personal profit.
We hope through this audit to show the community transparency efforts in the past, as well as continue to strive to build a more transparent, decentralized system in the future.”
In fact, Do Kwon is being arrested by the Korean authorities and is currently unknown. This is not the first time Kwon has asserted that he is "clean", not embezzlement or using money that is not transparent.
Nov 16, 2022