The Luna Foundation Guard (LFG) transferred almost $95 million in BNB and AVAX tokens to an unknown wallet address after TerraForm Labs CEO Do Kwon agreed to settle charges with the U.S. Securities and Exchange Commission (SEC). The reason behind shifting these large crypto funds remains unclear.
Luna Foundation Guard Transfer $95 Million After Terra-SEC Settlement
Data from Arkham Intelligence shows that an LFG-linked address transferred 1.97 million Avalanche (AVAX) tokens and 39,498 Binance Coin (BNB) to an anonymous wallet. According to on-chain data, this transfer happened exactly at 03:33 AM (UTC).
Even after the $95 million transfer, the LFG address still holds $94.27 million in BNB and AVAX tokens.
This Luna Foundation Guard (LFG) is the firm behind the Terra ecosystem. The latest transaction is not the first time the organization has moved large amounts of cryptocurrencies. In November 2022, the LFG said they spent $2.8 billion to support the de-pegged stablecoin TerraUSD (UST).
Also, the source revealed that Terraform Labs (TFL) tried to save the peg, spending $613 million. Unfortunately, their efforts were in vain as UST dropped to zero, forcing various exchanges and brokers to file for bankruptcy.
Currently, the LFG has not provided any official explanation for the recent transfer of $95 million.
Terra’s Do Kwon Reaches Settlement with SEC, Details Awaited
Do Kwon, the founder of TerraForm Labs, has made a settlement agreement with the United States Securities and Exchange Commission (SEC). Court records show that on May 29, Kwon and the SEC agreed in principle to settlement terms. This agreement was made before U.S. District Judge Jed Rakoff.
Further, the Court ordered both parties to conclude and submit details of the complete settlement by June 12, 2024. Until then, the specific terms of the settlement remain undisclosed and private.
This settlement comes after a long-standing legal battle between Kwon and the SEC. In April, the regulatory agency had requested the Court to impose a massive $5.3 billion penalty against Kwon and TerraForm Labs. This amount included civil penalties, disgorgement, and prejudgment interest.
The huge penalty demand followed the Court’s ruling that found Kwon and Terra liable for fraud in the aftermath of the massive collapse of the Terra ecosystem in 2022.
However, Kwon and TerraForm Labs suggested a much lower penalty to the judge, seeking just $1 million in fines. They had also urged the Court to dismiss the SEC’s request for disgorgement.
The crypto community is buzzing with anticipation, with the final settlement details expected by June 12. The public will likely gain more clarity when the final settlement is submitted. But for now, it’s unclear whether the LFG’s recent $95 million transfer is related to this impending settlement deal.
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