{"id":14547,"date":"2022-11-16T23:01:12","date_gmt":"2022-11-16T23:01:12","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/terras-2-8b-defense-system-luna-foundation-guard-audit-says-group-spent-more-than-80000-bitcoin-defending-ust-peg-bitcoin-news\/"},"modified":"2022-11-16T23:01:12","modified_gmt":"2022-11-16T23:01:12","slug":"terras-2-8b-defense-system-luna-foundation-guard-audit-says-group-spent-more-than-80000-bitcoin-defending-ust-peg-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/terras-2-8b-defense-system-luna-foundation-guard-audit-says-group-spent-more-than-80000-bitcoin-defending-ust-peg-bitcoin-news\/","title":{"rendered":"Terra\u2019s $2.8B Defense System \u2014 Luna Foundation Guard Audit Says Group Spent More Than 80,000 Bitcoin Defending UST Peg \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Months after the collapse of Terra\u2019s U.S. dollar-pegged token UST, the organization created to protect the once-stable coin, the Luna Foundation Guard (LFG), published an audit report audited by the New York-based consultancy company JS Held. According to the report, LFG claims to have spent 80,081 bitcoin and 49.8 million stablecoins, which add up to roughly $2.8 billion to defend UST\u2019s peg.<\/strong><\/p>\n

LFG Audit by JS Held Claims Group Defended UST Peg With $2.8 Billion in Crypto Assets<\/h2>\n

On Nov. 16, 2022, months after the mid-May Terra stablecoin depegging event<\/a>, the Luna Foundation Guard (LFG) published a blog post<\/a> concerning an audited transparency report that claims the organization spent $2.8 billion in crypto assets defending UST. The once stable coin UST is now called terrausd classic (USTC),<\/a> and it\u2019s currently trading for $0.02 per unit on Nov. 16, 2022.<\/p>\n

Terraform Labs co-founder Do Kwon also tweeted about the audit on Wednesday. \u201cA third-party audit of LFG and TFL\u2019s peg defense activity during May 2022 has been published,\u201d Kwon tweeted<\/a>. Terra\u2019s co-creator further added<\/a>:<\/p>\n

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Many of you lost a lot of money in UST \u2014 for this I am sorry. While the system was transparent and open source, I as its creator should have understood and communicated its risks better.<\/p>\n<\/blockquote>\n

In the report published by the LFG, it says that the technical audit<\/a> was done by the New York firm JS Held. It defends both LFG\u2019s and Terraform Labs\u2019 (TFL) actions during the UST depegging event. \u201cLFG spent ~$2.8B (80,081 BTC<\/a> and 49.8M in stablecoins) to defend UST\u2019s peg, consistent with LFG\u2019s tweets on May 16th, 2022,\u201d LFG\u2019s blog post says. \u201cAdditionally, TFL went above and beyond and spent $613M of its own capital to defend UST peg.\u201d<\/p>\n

\u201cWe relied upon various types of quantitative and qualitative information, including onchain data; TFL and LFG trading records JSH obtained directly from the exchanges; and consultations with the TFL business,\u201d JS Held\u2019s audit explains. The report also details that TFL maintained accounts on Binance that held BTC<\/a>, ETH<\/a>, BNB<\/a>, USDT<\/a>, BUSD, LUNA, and UST around May 8, 2022.<\/p>\n

LFG says the audit dispels any allegations like embezzlement or misuse of funds, helping insiders, or that the LFG funds were frozen by law enforcement. \u201cThe report shows that all LFG funds were spent to defend UST\u2019s peg parity with the dollar as declared, and that LFG\u2019s remaining balances are the only funds remaining,\u201d LFG said on Wednesday.<\/p>\n

Just recently it was reported<\/a> that Terraform Labs co-founder, Daniel Shin (Shin Hyun-seung), had his business Chia Corporation raided this week over connections with TFL and \u201cunfair trade practices.\u201d Other reports<\/a> stemming from South Korea\u2019s local media have detailed that the more vocal Terralabs co-founder, Do Kwon, is allegedly hiding out in Europe.<\/p>\n

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bnb<\/a>, BTC<\/a>, BTC deployed<\/a>, BUSD<\/a>, Chia Corporation<\/a>, Daniel Shin<\/a>, defend UST peg<\/a>, do kwon<\/a>, Do Kwon tweet<\/a>, ETH<\/a>, JS Held<\/a>, JS Held audit<\/a>, LFG Bitcoin<\/a>, LFG funds<\/a>, LUNA<\/a>, South Korea<\/a>, technical audit<\/a>, terrausd classic (USTC)<\/a>, USDT<\/a>, UST<\/a>, UST depeg<\/a>, UST depegging<\/a>, UST peg<\/a><\/div>\n<\/div>\n

What do you think about LFG\u2019s audit that says the organization spent more than 80,000 bitcoin defending UST\u2019s peg? Let us know what you think about this subject in the comments section below. <\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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