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Luna Foundation blames litigation for non-distribution of assets to Terra holders

Luna Foundation Guard (LFG) tweeted Oct. 7 that its effort to distribute the remaining assets of the failed Terra ecosystem to the token holders has been frozen due to ongoing litigation.

1/ Since $UST’s depeg in May, there has been understandable interest in LFG’s assets and how they will be distributed. As mentioned, our goal is to distribute LFG’s remaining assets to those impacted by the depeg, smallest holders first. https://t.co/VOTQDkQZ90

— LFG | Luna Foundation Guard (@LFG_org) October 7, 2022

The Foundation stated that it would be unable to carry out the distributions as planned for as long as “these matters are outstanding.”

LFG reiterated that its goal “remains to distribute LFG’s remaining assets to small $UST holders.”

Excuses.

May 9 – UST depeg
May 16 (7 days) – LFG commits to small holder refund
May 28 (19 days) – You launch an entire new blockchain & conduct a mass LUNA drop
June 21 (43 days) – First Terra lawsuit is filed

You had loads 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 only 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 stated that the Foundation “had loads of time to do a simple USDC airdrop.”

Luna Foundation had spent almost all its Bitcoin (BTC) reserve to defend UST’s peg. According to the Foundation’s dashboard, its reserve is left with $105 million, with its Bitcoin reserve worth $6.13 million.

Meanwhile, a member of the 5-man council Jonathan Caras, in May, said Do Kwon did not reach out to the council since UST’s crash.

Recently, South Korean authorities began canceling Do Kwon’s passport. A South Korean District Court later denied the arrest warrant for his aide Yoo Mo.

Terraform Labs had described South Korea’s arrest warrant for Kwon as “unfair.”

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