Terra Luna: $3 billion in Bitcoin missing from reserves

Nothing overnight – Unless you have been cut off from all networks for a week, any crypto enthusiast is now aware of the disaster that affected the Terra project (LUNA) and its stablecoin UST. A few days before the disaster, the Luna Foundation Guard (LFG) owned more than 80,000 bitcoins (BTC) where did they go? The answer in this article.

Nearly 3 billion dollars worth of Bitcoin gone up in smoke?

The Luna Foundation Guard had the non-profit purpose of making reservations counterpart (notably in bitcoins) to ensure the indexation of the stablecoin TerraUSD (UST) on the US dollar. And before the start of the cataclysm on May 9, 2022, things were going pretty well, apparently.

Indeed, as revealed in a recent LFG tweet (below), the reserves were still made up of 80,394 bitcoins on May 7, the gigantic equivalent of approximately 2.9 billion of dollars at this moment. And that’s not counting the tens of millions of dollars in other cryptocurrencies, such as BNB, AVAX or the USDT and USDC stablecoins.

It turns out that in the first two days of the disaster (9 and 10 May), over 99% of these BTCs were transferred from LFG reserves to accounts on two crypto exchanges: Gemini and Binance.

Twitter account @LFG_org

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The Luna Foundation tried to stabilize the UST by selling BTC on Gemini and Binance

As an analysis carried out by the company Elliptic reports, 52,189 BTC have been moved to the platform Gemini from May 9. 28,205 BTC were also transferred to Binance around 3 a.m. on May 10 (French time).

From the loss of indexing of the UST on the dollar, the Luna Foundation Guard began by to sell all its stablecoins USDC and USDTbefore starting to liquidate bitcoins with a vengeance on May 10.

“LFG directly sold 26 million USDT and 23 million USDC for a total of 50,200,071 UST. She transferred 52,189 BTC to exchange them with a counterparty (Gemini) (….) for a total of 1.5 billion UST. »

The Luna Foundation is selling off all its crypto-assets in an attempt to save the UST.
Twitter account @LFG_org

The deadly chain reaction was quick to continue afterwards, with the sale of 33,206 BTC. As of Monday, May 16, 2022, there were only 313 BTC in the reserves of the Luna Foundation Guard, i.e. less in value – $9.4 million – than the 39,914 BNB that were not affected – approximately $12 million.

The Luna Foundation Guard has almost nothing left in BTC.
Twitter account @LFG_org

If there is almost nothing left in Bitcoin in its reserves, the LFG fortunately had a good amount ofAVAX from Project Avalanche in its reserves. Indeed, it is now the latter who constitute the largest part of the remaining crumbs to the Luna Foundation, since its nearly 2 million AVAX are currently valued at $65 million. There would remain, in all and for all, approximately $90 million of crypto-assets in LFG reserves.

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