Terra: LFG say legal battles are preventing crypto payments to UST holders

Luna Foundation Guard (LFG) is explaining why it is not paying small holders of the collapsed stablecoin TerraUSD (UST).

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Terra: LFG say legal battles are preventing crypto payments to UST holders

LFG, a nonprofit founded to support the Terra ecosystem (LUNA), said the ongoing legal battles make keeping that promise impossible at the moment.

“Since the UST split in May, there has been understandable interest in LFG assets and how they will be distributed. As mentioned, our goal is to distribute LFG's remaining assets to those affected by the divestment, first to the smallest holders.

Unfortunately, due to ongoing lawsuits and threats, delivery is not possible at this time. While these issues are pending, no timetable can be established to address them. "

The institution first pledged to use its remaining holdings to compensate small UST holders in May, about a week after the stablecoin collapsed.

“The fund seeks to use its remaining assets to offset the remaining users of UST, who were smaller holders first. We are still discussing through different delivery methods, updates will be made soon. "

The LFG faced some criticism on Twitter for not distributing the funds, with the organization saying it still intends to refund UST holders.

“Our goal remains to distribute the remaining LFG assets to small UST holders. We will continue to support the possibility of these early plans, and those waiting will be the first to know about new developments. "

Oct 09, 2022

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