LFG Slow-Walks Plan to Repay Small-Time Terra Holders, Citing Legal Threats
An effort to compensate Terra owners with assets from Luna Foundation Guard, which spent billions fruitlessly defending the failed stablecoin’s peg, is frozen in place due to the threat of litigation, LFG tweeted Friday.
“Our goal is to distribute LFG’s remaining assets to those impacted by the depeg, smallest holders first,” LFG tweeted. “Unfortunately, due to ongoing and threatened litigation, distribution is not possible at this time. While these matters are outstanding, there can be no timeline established for resolution.”
10/ The Foundation is looking to use its remaining assets to compensate remaining users of $UST, smallest holders first.— LFG | Luna Foundation Guard (@LFG_org) May 16, 2022
We are still debating through various distribution methods, updates to follow soon.
According to figures self-reported from LFG, the foundation’s reserve’s currently total around $100 million. That’s a drop in the bucket of the estimated $60 billion in value wiped out by Terra’s collapse earlier this year, though the amount attributable to “small” UST holders is likely considerably lower.