LFG Used $2.8B Fund to Bail Out UST
According to an audit conducted by JS Held of the Luna Foundation Guard (LFG), the organization spent about $2.8 billion in reserve fund to protect TerraUSD (UST).
According to the statement, the audit was intended to address a number of allegations from the community regarding LFG and Terraform Labs (TFL). Some of the claims included possible embezzlement of the reserve fund, its misuse and freezing of assets.
JS Held experts received access to primary information and their remuneration did not depend on a positive result of the check.
The company’s experts have discovered that LFG spent 80,081 BTC and $49.8 million in stablecoins to secure the UST peg, in line with May 16 reports; in turn, TFL sent $613 million of its own capital to save the “stablecoin.”