80,000 Bitcoin Worth $2.8 Billion Used to Defend Peg – Here’s What You Need to Know

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Terra (Luna) Founder Do Kwon and Luna Foundation Guard (LFG) spent Rs 80,000 BitcoinTo protect the algorithmic stablecoin, which is worth $2.8 billion Ustdollar peg, a new audit report has revealed.

The newly revealed numbers were shared by Do Kwon in a Twitter thread on Wednesday after the Luna Foundation Guard – the unit tasked with maintaining the stability of the UST – released a technical audit report by auditing firm JS Held .

According to the audit, a little over 80,000 BTC worth $2.8 billion was spent by LFG to protect the UST peg. Additionally, LFG spent $613.6 of its capital on a “net purchase basis,” the audit report said.

The LFG team noted in their Twitter thread that LFG was “100% funded by donations from TFL to build exogenous reserves for Terra stablecoins,” while adding that the stablecoin’s pegs are meant to protect Funds were “sadly insufficient”.

The LFG team further stated, “The LFG fully lived up to its mandate to do everything within its resources to prevent that outcome.”

Meanwhile, the report also confirmed that LFG’s token balance, as reported in Tweet from LFG on 16th Maywere accurate.

“The pegged defense transactions reported in the LFG May 16 tweets contained estimates rather than actual transaction data, but the use of these estimates does not affect the accuracy of the reported LFG balances,” the report said.

LFG balance reported on 16th May. Source: LFG Audit Report.

Do Kwon: “I’m sorry”

Commenting on the situation as the new audit report was released, Terra founder Do Kwon said that he is sorry for the losses experienced by users.

“Many of you have lost a lot of money in UST – I am sorry for that. While the system was transparent and open source, I As its manufacturer should have better understood and communicated its risks,” Du Kwon commented In a tweet as soon as the report was released.

He said in a follow-up tweet that although he was “wrong” about the UST’s risks, there was “no fraud” involved.

“TerraForm Labs donated what was then >$3B to establish [Luna Foundation Guard] To diversify collateral support of UST, and focused our investments to grow Terra’s ecosystem. If we thought UST would fail, we would not have done it,” he said.

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