The audit company JS Held, after checking the actions of the Luna Foundation Guard, confirmed that LFG used almost $2.8 billion just to maintain the TerraUSD (UST) peg.
The audit was conducted by JS Held to clear the crypto community’s accusations against Luna Foundation Guard (LFG) and Terraform Labs (TFL) that the fund’s capital was stolen, misused, blocked on the site, or the fund has non-public wallets.
JS Held noted that it was provided with all primary information, including access to wallets and trading accounts on the fund’s centralized exchanges. Representatives of the company claim that their fee did not depend on a positive report.
JS Held reported that the audit revealed:
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LFG spent 80,081 bitcoins and $49.8 million in stablecoins (about $2.8 million in total) to restore the UST stablecoin’s peg to the US dollar, which was announced by the fund on May 16;
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in turn, TFL sent $613 million of its own capital to save the stablecoin.
As a result, the audit company JS Held came to the conclusion that all the money from the reserve fund could not ensure the peg of UST to the US dollar.
According to the auditors, Luna Foundation Guard has fully fulfilled its obligations to the community.
Recall that the effect of the collapse of the Terraform Labs project led to a massive panic of investors and the fall of the cryptocurrency market, which was immediately compared with the consequences of the bankruptcy of the financial corporation Lehman Brothers in 2008.
Source: Bits
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