Luna Foundation Guard (LFG), a fund focused on the Terra ecosystem, stated that it is unable to give a timeline for assets distribution to users post stablecoin TerraUSD depegging from the dollar, as reported by Cointelegraph.
According to Cointelegraph, through a recent Twitter thread, LFG cited ongoing and threatened litigation in its reasons for being unable to distribute its remaining assets to UST users starting with the smallest HODlers. Reportedly, the fund’s reserves consisted of four billion dollars in assets prior to the market downturn in May, which has dropped to around $105 million during the publication’s writing.
“1/ Since $UST’s depeg in May, there has been understandable interest in LFG’s assets and how they will be distributed. As mentioned, our goal is to distribute LFG’s remaining assets to those impacted by the depeg, smallest holders first. https://t.co/VOTQDkQZ90,” Luna Foundation Guard said in a statement.
On the basis of information by Cointelegraph, cryptocurrency users after hearing the announcement heaped criticism towards the fund for not offering compensation, and also towards Do Kwon, co-founder, Terra, for his alleged involvement in the collapse. South Korea-based authorities have been pursuing a case against Kwon and Terra associates post collapse of the ecosystem and the implications around it. In September, a South Korean court issued an arrest warrant for Kwoon post interpol’s addition of his name to its Red Notice list.
Moreover, Cointelegraph noted that on October 5, prosecutors issued an arrest warrant for Yoo Mo, business head, Terraform Labs, which resulted in his arrest in South Korea prior to a judge reportedly reprimanding the legal action. South Korea’s Ministry of Foreign Affairs also issued the order to Kwon for surrendering of his passport by October 20, as it could have carried the risk of having the document voided and not reissued.
(With insights from Cointelegraph)
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