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The Luna Foundation Guard (LFG), nonprofit managing UST algorithmic stablecoin, has launched a technical audit to offer full transparency into property and efforts to repeg TerraUSD (UST) in May. LFG goals to reply all allegations together with misappropriated funds, insiders, holdings funds in different wallets, and funds frozen. The report claims LFG and TFL used nearly $3.4 billion to defend the UST peg.

LFG Spent $2.8 Billion to Defend UST Peg

The Luna Foundation Guard in a tweet on November 16 disclosed a technical audit report by third-party auditing agency JS Held. According to the audit report, LFG spent nearly $2.8 billion between May 8-12 to defend TerraUSD’s (UST) peg. This contains 80,081 BTC and 49.8 million in stablecoins.

Moreover, Terraform Labs spend a further $613 million to defend the peg. The report claims LFG spent all funds to stop UST from dropping its peg, with remaining balances being the one funds remaining.

LFG was the second-largest holder of Bitcoin and deliberate to extend its Bitcoin reserves to $10 billion. Unfortunately, almost $2.5 billion plummeted immediately and did not defend the UST peg amid excessive market volatility. It made a $60 billion influence on the lives of crypto traders.

Moreover, the Luna Foundation Guard additionally goals to reply allegations in opposition to it. It asserts no LFG funds had been misappropriated, used to profit insiders, or saved in different secret wallets. Also, all LFG are stored in self-hosted wallets and haven’t moved since May 16.

Terra founder Do Kwon claims the Terra case is completely different from different crypto failures. He additionally cited the failure of FTX the place its operators misused buyer funds for monetary achieve.

“While there have been multiple recent failures in crypto, it is important to distinguish between Terra’s case, where a transparent, open-source decentralized stablecoin failed to maintain peg parity and its creators spent proprietary capital to try to defend it.”

Some imagine LFG and TFL should be audited by large 4 auditing corporations contemplating the dimensions points. Do Kwon replied that the dimensions shouldn’t be large now.

Terra Tokens Saw Increased Volume

Terra tokens together with LUNA, LUNC, and USTC (beforehand UST) recorded elevated buying and selling quantity. LUNA worth is buying and selling at $1.66, down over 1% within the final 24 hours. Meanwhile, Terra Classic (LUNC) and USTC noticed over 3% and 1% leap, respectively. Terra Classic is buying and selling at $0.00017

Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his information about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been related to the blockchain and cryptocurrency business for a considerable interval and is at present protecting all the most recent updates and developments within the crypto business.

The introduced content material could embrace the private opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any duty in your private monetary loss.