$1.2 Billion in Bitcoin Reserve Lost Luna Foundation Guard »Crypto Insiders
Luna Foundation Guard (LFG) is a non-profit organization that aims to support and help grow the Terra (LUNA) ecosystem. To do this, they acquired a bitcoin (BTC) reserve of 70,736 bitcoins, worth approximately $2 billion. This reserve will be used to maintain the stability of the stablecoin if it fails with LUNA.
Despite the huge amount of BTC purchased, the reserves are still not able to supply the underground reservoirs. The stablecoin, as the name suggests, should represent the value of $1. At the time of writing, this stablecoin is only worth $0.17, which is a significant drop.
Meanwhile, LFG has lent this Bitcoin reserve to over the counter (OTC) investment companies to protect underground reservoirs. This should leave $1.2 billion worth of bitcoin in reserve. The organization has not yet announced anything about this reserve.
Of course we can look at the LFG wallet via the blockchain, but we see that there are no more bitcoins in this wallet. This wallet data was announced on May 9 via Twitter:
Below is the new LFG BTC dollars Wallet address: https://t.co/9t0NX3VEMI
The last clip drawn by LFG was ~37K BTC. Similar to the last publication, it has been loaned to MMs.
Very little was spent from the last clip but it is currently being used for purchase UST†
The update is coming.
– LFG | Luna Foundation Guard (LFG_org) May 9, 2022
But where are those bitcoins?
Outside on the chain Data shows that all 70,736 bitcoins have disappeared from LFG’s reserves. LFG itself has indicated that it needs another $1 billion to protect the stablecoin. However, it appears that BTC is no longer needed by LFG as the company is no longer reporting on it. Additionally, the Terra founder believes that the floor cabinets may no longer be repairable.
So, exactly where all the bitcoins from the sanctuary went or what they were used for, remains a mystery at the moment. Cryptocurrency researcher Mika Honcasalo says:
“So despicable that no one knows what LFG has done with billions in BTC collateral.
I assumed they were sold out, but a lot of rumors circulate that they still have most of them.”
Pretty tasteless that no one knows what LFG has done with the billions in BTC collateral.
Assumed they had sold, but a bunch of rumors they still hold most of it.
— mhonkasalo (@mhonkasalo) May 13, 2022
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