Terra (LUNA) founder Do Kwon and the Luna Foundation Guard (LFG) spent as a lot as 80,000 bitcoin, value a whopping $2.8bn, to defend the algorithmic stablecoin UST’s greenback peg, a brand new audit report has revealed.
The newly revealed numbers had been shared by Do Kwon himself in a Twitter thread on Wednesday, after Luna Foundation Guard – the entity tasked with sustaining the soundness of UST – launched a technical audit report by auditing agency JS Held.
According to the audit, simply over 80,000 BTC, value $2.8bn, was spent by LFG to defend the UST peg. Additionally, LFG spent $613.6 from its personal capital on a “net purchase basis,” the audit report stated.
The LFG staff famous in its Twitter thread that LFG was “100% funded by donations from TFL to build exogenous reserves for Terra stablecoins,” whereas including that the funds had been “unfortunately insufficient” to defend the stablecoin’s peg.
“LFG lived up to its mandate fully to do everything within its resources to prevent that outcome,” the LFG staff additional stated.
Meanwhile, the report additionally confirmed that LFG’s token balances, as reported in tweets from LFG on May 16, had been correct.
“The peg defense transactions recounted in the LFG May 16 Tweets included estimates instead of actual transaction data, but the use of these estimates did not affect the accuracy of the reported LFG balances,” the report stated.
Do Kwon: “I am sorry”
Commenting on the state of affairs as the brand new audit report was launched, Terra founder Do Kwon stated that he’s sorry for the losses skilled by customers.
“Many of you lost a lot of money in UST – for this I am sorry. While the system was transparent and open source, I as its creator should have understood and communicated its risks better,” Do Kwon Twitter.com/stablekwon/standing/1592874494582218753″>commented in a tweet because the report was launched.
He added in a follow-up tweet that though he was “wrong” in regards to the dangers of UST, there was “no fraud” concerned.
“TerraForm Labs donated what was then >$3B to establish [Luna Foundation Guard] to diversify UST’s collateral backing, and focused our investments to grow Terra’s ecosystem. We wouldn’t have done this if we thought UST were to fail,” he stated.