Luna Foundation Guard (LFG) tweeted on October 7 that its efforts to distribute the remaining assets of the failing Terra ecosystem to token holders had been frozen due to ongoing litigation.
1/ Since the $UST filing in May, there has been understandable interest in LFG’s assets and how they will be distributed. As mentioned, our goal is to distribute the remaining assets of LFG to those affected by the depeg, the smallest holders first. https://t.co/VOTQDkQZ90
— LFG | Luna Foundation Guard (@LFG_org) October 7, 2022
The Foundation said it would not be able to make the distributions as planned while “these matters remain unresolved.”
LFG reaffirmed that its objective “remains to distribute the remaining assets of LFG to small US$ holders. »
May 9 – Depeg UST
May 16 (7 days) – LFG agrees to reimburse small owners
May 28 (19 days) – You launch a brand new blockchain and perform a massive LUNA drop
June 21 (43 days) – The first Terra lawsuit is filed
You’ve had plenty of time to do a simple USDC airdrop. Why didn’t you?
— FatMan (@FatManTerra) October 7, 2022
Fatman Terra, however, tweeted that the Foundation was just making excuses. According to him, there was a 43-day gap between when the stablecoin was de-pegged and when the first lawsuit was filed against Terra. He said the Foundation “has plenty of time to do a simple USDC airdrop.”
The Luna Foundation had spent almost all of its Bitcoin (BTC) stash defending UST’s peg. According to the Foundation’s dashboard, his reserve ends up with $105 million, with his Bitcoin reserve worth $6.13 million.
Meanwhile, 5-man council member Jonathan Caras in May said Do Kwon had not contacted the council since the UST crash.
Recently, South Korean authorities began to cancel Do Kwon’s passport. A South Korean district court later dismissed the arrest warrant for his assistant Yoo Mo.
Terraform Labs had called South Korea’s arrest warrant for Kwon “unfair”.