Luna Foundation Guard (LFG) and Terraform Labs (TFL) released a technical audit of TerraUSD (UST) price protection efforts between 8 and 12 May.have a purposeto answer questions “Allegations posted on social media” about the fate of funds transferred during efforts to protect UST from pegs.
The audit found that LFG spent 80,081 Bitcoin and $49.8 million in stablecoins (roughly $2.8 billion at the time) to protect UST from breaking its peg, consistent with what LFG stated in a May 16 tweet. It also spent $613 million to protect the peg, an audit conducted by US consulting firm JS Held.
LFG concluded that the audit results showed no misuse of funds. In addition, LFG claims that the audit results will dispel allegations that “LFG funds [ถูก] suspended by law enforcement.” But “all LFG funds are stored in self-hosted wallets. There has been no movement since the tweet on May 16 and has not been suspended.”
The LFG blog cites Terraform Labs founder Do Kwon, who is currently charged with criminal charges in South Korea and whose whereabouts are unknown, saying:
“It is important to differentiate between the case of Terra, which is a transparent decentralized stablecoin. with the failure of a centralized platform that misuses other people’s money (customer funds) for financial gain.”
Kwon Youngwrite “Many of you have lost a lot of money on UST – for this, I’m sorry, although the system is transparent and open source. But as creators, we should be able to better understand and communicate risks.”
2/ Before we get into the audit,
Many of you lost a lot of money in UST – for this I am sorry. While the system was transparent and open source, _I_ as its creator should have understood and communicated its risks better.
— Do Kwon
(@stablekwon) November 16, 2022
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