Luna Foundation Guard Moves $95M Amid SEC Dispute with Terra

Terra Classic (LUNC) Poised for Growth Amid Market Activity and Token Burns

In a surprising move, Luna Foundation Guard (LFG), the company behind the Terra ecosystem, transferred nearly $95 million worth of BNB and AVAX tokens to an unmarked address. This shift coincides with the news of a settlement deal between TerraForm Labs CEO Do Kwon and the SEC.

Data from the analytic platform Arkham Intelligence reveals that the LFG address moved 1.97 million Avalanche (AVAX) tokens and 39,498 Binance Coin (BNB) to an unidentified address. This transaction, which took place today at exactly 03:33 AM (UTC), totaled approximately $95 million. Currently, the LFG address still holds $94.27 million worth of AVAX and BNB tokens.

LFG’s History Of Large Crypto Transfers

Notably, LFG has a history of moving substantial crypto assets. In November 2022, the company claimed it spent $2.8 billion defending the de-pegged algorithmic stablecoin TerraUSD (UST). Despite the recent transaction, LFG has not disclosed the reason behind it, leaving the crypto community speculating.

Related article: Terraform Labs (LUNA) Faces Legal Turmoil as Extradition Approvals and SEC Decision Unfold

Meanwhile, this development comes as reports surface about a settlement between Do Kwon, founder of TerraForm Labs, and the SEC. Court records indicate that the parties reached a settlement in principle before U.S. District Judge Jed Rakoff on May 29. Subsequently, the court has ordered the final settlement terms to be submitted by June 12, 2024.

Dispute Over Penalties

Previously, in April, the SEC sought $5.3 billion in civil penalties, disgorgement, and prejudgment interest against Kwon and TerraForm Labs after the court found them liable for fraud following the collapse of the Terra ecosystem. 

Related article: Terra Luna Classic Community Votes on New Forum Proposal Amid Controversy

However, the defendants proposed a significantly lower penalty of $1 million and urged the court to dismiss the SEC’s disgorgement request. The final terms of the settlement remain unclear at the time of writing. Nonetheless, the public might gain more details when the parties file the final terms on June 12 for the court’s approval. 

It remains uncertain whether LFG’s recent transfer of $95 million worth of AVAX and BNB tokens is related to the settlement deal.

fxcrypto tele

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

Share this :

Facebook
Twitter
LinkedIn
Telegram
WhatsApp