Tech
LFG Moves Millions Into Cryptocurrencies After SEC Settlement
Luna Foundation Guard (LFG) transferred nearly $95 million in BNB and AVAX tokens to an unknown wallet address after TerraForm Labs CEO Do Kwon agreed to settle allegations with the Securities and Exchange Commission (SEC ) of the United States. The reason behind the move of these large crypto funds remains unclear.
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Data from Arkham Intelligence shows that one address linked to LFG transferred 1.97 million Avalanche (AVAX) token and 39,498 Binance Coin (BNB) on an anonymous wallet. According to on-chain data, this transfer occurred at exactly 03:33 (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 company behind the Terra Ecosystem. The latest transaction is not the first time the organization has moved large quantities of cryptocurrencies. In November 2022, the LFG She said they spent $2.8 billion to support the unpegged stablecoin TerraUSD (UST).
Furthermore, the source revealed that Terraform Labs (TFL) tried to save the anchor, spending $613 million. Unfortunately, their efforts were in vain as the UST fell to zero, forcing various exchanges and brokers to file for bankruptcy.
Currently, 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 entered into a settlement agreement with the United States Securities and Exchange Commission (SEC). Court files show that on May 29, Kwon and the SEC agreed in principle to the terms of the settlement. This agreement was made before U.S. District Judge Jed Rakoff.
Furthermore, the Court ordered both parties to conclude and submit the details of the comprehensive agreement by June 12, 2024. Until then, the specific terms of the agreement remain secret and private.
This settlement comes after a long-running legal battle between Kwon and the SEC. In April, the regulatory agency had required the Court imposed a massive $5.3 billion fine against Kwon and TerraForm Labs. This amount included civil penalties, disgorgement and prepaid interest.
The huge fine followed the Court’s ruling that found Kwon and Terra liable for fraud following the massive collapse of the Terra ecosystem in 2022.
However, Kwon and TerraForm Labs suggested a much lower penalty to the judge, asking for only $1 million in fines. They had also urged the Court to reject the SEC’s disgorgement request.
The crypto community is abuzz, with final details of the deal expected by June 12. The public will likely gain more clarity when the final agreement is presented. But for now, it’s unclear whether LFG’s recent $95 million transfer is tied to this impending settlement agreement.
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