- $750 million BTC was used for restoring peg value by lending to OTC trading firms.
- 28,205 BTC was transferred to an unknown account on Binance Exchange.
Luna Foundation Guard, the firm of Terra, has been stacking BTC in reserve for emergency rescue. The ultimate goal of Do Kwon, Co-founder of Terraform Labs, was to accumulate $10 billion BTC to back the UST when it loses de-pegged value and LFG was able to hold $3.5 billion for some point in time.
LFG stated that the reserve protocol to be:
“the dilution of the LUNA supply during severe contractions and restoring the peg in real-time and maintaining an alternative arbitrage opportunity outside of the Terra protocol itself.”
Tragically, the algorithmic stablecoin UST was not able to deliver its previously promised value and had to put the BTC in the reserve to use. A $750 million BTC was lent to the OTC trading firms to stabilize the situation and help LUNA and UST to rise in the market.
$1.2 Billion BTC Evanesced
The price of LUNA started to fall at the start of May, on May 9th, Terra announced the lending process. Further days have been more downfall for LUNA, and many suspicions were raised about the usage of balance BTC.
According to Elliptic, Blockchain Analytics, an unannounced transaction was made emptying the 28,205 BTC left in the LFG wallet to an account in the Binance exchange. It can also be confirmed from the record by glassnode and Blockchain.com.
Though the reason and destination of the transaction remain a mystery, investors have been kept in the dark. As of now, there is no official statement from either Terra or Do Kwon.