News From Luna Foundation That Will Upset Its Investors: Payments Suspended!

Failed stablecoin TOPwho spent billions of dollars to save Luna Foundation Guard (LFG) with their assets terra its owners’ attempt to recover damages was halted due to the threat of lawsuits, according to LFG’s tweet today.

Luna Foundation Stops Plan to Repay Terra Owners Citing Legal Threats

LFG said, “Our aim is to distribute LFG’s remaining assets to those affected by the collapse, the smallest shareholders first. Unfortunately, due to ongoing and threatened lawsuits, distribution is not currently possible. As these issues persist, no timeline for resolution can be set.” he tweeted.

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

— LFG | Luna Foundation Guard (@LFG_org) October 7, 2022

According to LFG’s self-reported figures, the foundation currently has around $100 million in reserves.

While that figure is very low next to the estimated $60 billion that was wiped out by the collapse of Terra earlier this year, the amount that falls to those with small amounts of UST is likely to be much lower.

LFG previously had a five-member governing council, but after the collapse they all left. The current board of directors is officially only the ecosystem founder. Do Kwon and Terra principal investigator Nick PlatiasIt consists of.

Recently, the South Korean Ministry of Foreign Affairs published an announcement on its website. Terra (Luna) its creator had announced that it would invalidate Do Kwon’s passport.

Terra, which Kwon is the founder of, experienced a major collapse in May of this year and lost billions of dollars in value within days, victimizing its investors.

*Not investment advice.