LFG Revealed That It Only Has 313 BTC Left In Reserves

LFG Revealed that it only holds 313 BTC in its reserves and they dropped by more than 80,000 in the past week so let’s read more today in our latest Bitcoin news.

The LFG revealed that it only has 313 BTC left in its reserves and previously held 80,394 as well as a selection of other cryptocurrencies like USDC, AVAX, UST, and LUNA. As of today, the organization’s reserves include a mere 313 BTC or $9.2 million at current prices. The wipe-put of more than 80,000 BTC follows the collapse of Terra’s UST algorithmic stablecoin with the network’s native token last week which was supposed to be pegged 1:1 to the US dollar and then went to a freefall below $0.15 which led LUNA crash from $80 to $0.0002.

7/ On May 12, LFG swapped 883,525,674 $UST to 221,021,746 $LUNA & staked this across a range of validators to protect against a possible governance attack as the amount of $LUNA continued to increase.

All transactions described above have now been completed.

— LFG | Luna Foundation Guard (@LFG_org) May 16, 2022

LFG was accumulating the crypto reserves for the de-pegging scenario with funds ready to be deployed if UST goes below $1. when the value of UST stablecoin dropped below its peg and the LFG said it will use as much as $1.5 billion in crypto and the $750 million in BTC to buy UST and defend the stabelcoin’s peg. The money was sent to the address owned by a professional market maker that would deploy funds on behalf of LFG.
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This was confirmed later by Elliptic who said on the same day, another $930 million worth of BTC was sent from LFG-associated wallets to the market maker’s address. The total BTC worth $1.6 billion was moved to a single account to the Gemini exchange.

4/ LFG:
· Directly sold 26,281,671 $USDT & 23,555,590 $USDC for an aggregate 50,200,071 $UST
· Transferred 52,189 $BTC to trade with a counterparty, net of an excess of 5,313 $BTC that they have returned, for an aggregate 1,515,689,462 $UST

— LFG | Luna Foundation Guard (@LFG_org) May 16, 2022

LGF confirmed the transaction and said it will transfer the 52,189 BTC in question at trade with a counterparty. The organization said that when the UST price dropped below $0.07 in the last efforts to defend the peg so Terraform Labs sold the 33,206 BTC. Despite the emergency measures, UST’s collapse could not be prevented with today’s LFG statements pushing the price below even further. LFG said that it was looking to use the remaining assets to compensate the users of UST with the smallest holders being served first.

As earlier reported, The CEO Changpeng Zhao said the Binance exchange didn’t sell the LUNA holdings that it received in return for a $3 million investment made in the Terra ecosystem back in 2018. Binance’s holdings in the Terra blockchain governance token were worth only $1.6 billion at one point. Now it is worth just $2461 and sits in the wallet that It was sent to, meaning it was never moved or sold. The wallet holds 3.4 million LUNA and staked the rest.