Luna Foundation Guard Hiding 133M BTC Reserve?
Due to the crash of the Terra smart contract platform, the Luna Foundation Guard also came under criticism. The organization arose to improve the stability of the cryptocurrency . Now allegations are being made again. Accordingly, the LFG is hiding a BTC reserve worth 133 million US dollars.
Luna Foundation Guard bitcoin reserve
From a peak of around 80,000 Bitcoin, the Luna Foundation Guard reserve falls to just 313 BTC. The reason: When Terra crashes, the LFG intervenes and invests the Bitcoin intended as value protection in order to keep LUNA and the TerraUSD stable.
For a long time, the organization increased its BTC reserve. She wanted to become the largest Bitcoin holder. Actually, a whole ten billion US dollars should flow into this idea. Ultimately, however, it was only 1.5 billion.
The stabilization plan also fails. The entire cryptocurrency ecosystem collapses in May before bouncing back in September . The LFG is now once again in the public eye.
There is now an arrest warrant in South Korea against Terra co-founder and figurehead Do Kwon, but the programmer has long lived in Singapore. Or lived, because he does not want to reveal his location at the moment.
While South Korean authorities say Kwon is on the run, they are calling on crypto exchanges OKX and KuCoin to freeze around 66 million dollars in funds. These were the property of the LFG and had been secretly moved.
LFG Secretly Moves Millions of Dollars to Bitcoin?
The official information from the LFG is now considered dubious. One hears allegations from several quarters. The organization has far more than it admits in its official statements , the statement said.
Blockchain analyst ErgoBTC is also dealing with the topic and examining the assets of the LFG . He comes to a clear decision: The Luna Foundation Guard secretly holds around 6,980 Bitcoin worth over 133 million dollars.
The organization moved about half of the assets in individual fragments to the crypto exchanges KuCoin and OKX. It is these funds that have come under the focus of the South Korean authorities.
The crypto exchanges responded to the authorities’ request and froze the funds. ErgoBTC believes this event is another indication of ownership.
If [my] analysis were incorrect, we would expect to hear from a whale complaining about funds improperly seized.
Do Kwon denies connection
What stands out: The LFG uses a strategy called the peel chain, apparently hoping to obfuscate the funds. This is often used by users to cover tracks on a transparent blockchain .
The principle is quite simple. The user simply sends funds to a new address over and over again, splits the amount of money, and then sends different fractions back to new blockchain addresses, and so on.
A large number of transactions and addresses should ultimately make it unclear who has power over which funds. However, Do Kwon denies that there are any links between these funds and the LFG.
LFG only has these 313 Bitcoin.
He recently explained in an interview . In addition, he is unable to determine whether a person connected to the LFG owns these funds. A cooperation with a company for blockchain analysis is currently underway.
In the next few weeks, he expects a report that should provide information about the funds, said Kwon. According to him, there was no misappropriation of funds or their embezzlement.
LFG says it hasn’t moved any bitcoin since the crash in May. Remaining reserves of different cryptocurrencies worth a few tens of millions of US dollars should benefit small investors who have been harmed.