The Luna Foundation Guard (LFG), the organization backing the Terra ecosystem, transferred nearly $95 million worth of cryptocurrency earlier today. This comes amidst news of a settlement deal reached between TerraForm Labs founder Do Kwon and the U.S. Securities and Exchange Commission (SEC).
Large Crypto Transfer Raises Questions
Data from Arkham Intelligence, a blockchain analytics firm, reveals that the LFG sent 1.97 million Avalanche (AVAX) tokens and 39,498 Binance Coin (BNB) to an unidentified address. The total value of the transaction, which occurred on May 31st at 3:33 AM UTC, is estimated at $95 million.
The purpose of this transfer remains unclear. The LFG, known for its large-scale crypto movements, previously claimed spending a staggering $2.8 billion in November 2022 to defend the failing algorithmic stablecoin TerraUSD (UST).
Do Kwon Settles with SEC
This crypto transfer coincides with reports of a settlement between Do Kwon and the SEC. Court records show an agreement in principle was reached on May 29th with Judge Jed Rakoff, with finalized terms due by June 12th, 2024.
Previously, the SEC requested $5.3 billion in penalties and disgorgement from Kwon and TerraForm Labs following the court ruling them liable for fraud in the Terra ecosystem collapse. The defendants, however, countered with a much lower proposal of $1 million and requested dismissal of the disgorgement claim.
Uncertainty Surrounds Both Events
The specific details of the settlement between Do Kwon and the SEC remain undisclosed. More information is expected when the final terms are submitted for court approval on June 12th.
Furthermore, there’s no confirmation if the LFG’s $95 million crypto transfer is linked to the settlement deal. The crypto community is abuzz with speculation, awaiting further clarification from the Luna Foundation Guard.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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