Distribution of assets is ‘not possible at this time’, says Luna Foundation Guard

By Clark

The fund cited “ongoing and threatened litigation” in its reasons for being unable to distribute its remaining assets to UST users beginning with the tiniest HODLers.

The Luna Foundation Guard, or LFG, a fund centered on the Terra scheme, has aforesaid it cannot give a timeline to distribute assets to users following stablecoin TerraUSD depegging from the greenback.

In an Oct. 7 Twitter thread, LFG cited “ongoing and vulnerable litigation” in its reasons for being unable to distribute its remaining assets to UST users beginning with the tiniest HODLers. The fund’s reserves controlled quite $4 billion in assets before the market worsened in May, an associated quantity that had dropped to roughly $105 million at the time of publication.

“Distribution is not possible at now,” aforesaid the fund. “While these matters area unit outstanding, there may be no timeline established for resolution […] we’ll not stop advocating for our ability to follow through on these initial plans, and people waiting are the primary to grasp of latest developments.”

Crypto Twitter users responding to the announcement criticized the fund for not providing compensation in a very speedy manner, and Terra co-founder Do Kwon for his alleged involvement within the collapse.

“If you guys needed to try to to it, you’d have already done it while before litigations,” aforesaid user SvNem26. “You had enough time however instead DK was blaming exchanges for not providing knowledge.”

Authorities in South Korea are following a case against Kwon and Terra associates following the collapse of the scheme. In Sept, a South Korean court issued associate warrant for Kwon, followed by Interpol adding his name to its wanted notice list. At the time of publication, Kwon’s whereabouts were unknown, however he aforesaid on Twitter he was “making zero effort to cover.”

On Oct. 5, prosecutors issued an arrest warrant for Terraform Labs’s business head Yoo Mo, resulting in his arrest in South Korea before a judge reportedly unemployed the action at law. South Korea’s Ministry of Foreign Affairs jointly ordered Kwon to surrender his passport by Oct. 20 or risk having the document voided and not reissued.