The Luna Basis Guard (LFG) and Terraform Labs (TFL) commissioned a technical audit of their efforts to defend the value of TerraUSD (UST) between Could 8 and 12, 2022. The audit was meant to reply “allegations posed in social media” concerning the destiny of funds transferred throughout efforts to defend the UST greenback peg, in keeping with the LFG weblog.
The audit discovered that LFG spent 80,081 Bitcoins (BTC) and $49.8 million in stablecoins (about $2.8 billion on the time) to defend the UST peg. That was in keeping with what LFG indicated in its tweets on Could 16. As well as, TFL spent $613 million to defend the peg. The audit was carried out by U.S. consulting agency JS Held.
LFG concluded that the audit outcomes present there was no misuse of funds and no funds have been used to learn insiders. Moreover, LFG claimed the audit dispelled the allegation that “LFG fund [were] frozen by legislation enforcement.” Somewhat, “all LFG funds are saved in self-hosted wallets, haven’t moved for the reason that Could sixteenth tweet, and haven’t been frozen.”
1/ A 3rd get together audit of LFG and TFL’s peg protection exercise throughout Could 2022 has been printed: https://t.co/3vwSBhQcNq
— Do Kwon (@stablekwon) November 16, 2022
The ultimate conclusion is unsupported within the textual content and is fascinating in mild of the truth that South Korean police requested on Could 23 that exchanges freeze funds toed to LFG. In September, South Korean authorities once more requested exchanges KuCoin and OKX to freeze 3,313 BTC transferred from a pockets created Sept. 15 within the title of the LFG.
Associated: Terraform Labs claims case towards Do Kwon is ‘extremely politicized:’ WSJ
The LFG weblog quoted Terraform Labs founder Do Kwon, who faces felony costs in South Korea and whose present whereabouts are unknown, as saying:
“It is very important distinguish between Terra’s case, the place a clear, open-source decentralized stablecoin failed to keep up peg parity and its creators spent proprietary capital to attempt to defend it, and failure of centralized custodial platforms the place its operators misused different folks’s cash (buyer funds) for monetary acquire.”
Within the Twitter thread saying the audit, Kwon wrote, “A lot of you misplaced some huge cash in UST – for this I’m sorry. Whereas the system was clear and open supply, _I_ as its creator ought to have understood and communicated its dangers higher.”
