Terra Luna crash depletes LFG’s crypto reserves from 80,394 to 313 Bitcoin

The Luna Foundation Guard (LFG), the non-profit arm of Terraform Labs, has broken its silence on the current status of its crypto asset reserves. The organisation has revealed that they seek to recompense customers for the losses they have incurred as a result of the failure of their algorithmic stablecoin.

Terra's native token, Terra Luna, and stablecoin TerraUSD (UST), plummeted last week after UST lost its peg to the US dollar.

The LFG, a Singapore based non-profit which was created to defend UST, wrote in a 10-tweet thread on Monday that it would look to compensate the smallest holders first, adding that it is "still debating through various distribution methods, updates to follow soon."

LFG, which was recently the largest holder of Bitcoin in the world, announced on Monday that its reserves had been reduced from more than 80,000 Bitcoin on May 7 to 313 Bitcoin on May 16.

Currently, as per data from CoinMarketCap, the Terra Luna cryptocurrency is trading at $0.0002006, 31.03 per cent down in the last 24 hours, as of 4.45 pm IST on Monday. Whereas, TerraUSD, the stablecoin, is trading at $0.1265, instead of its peg which was supposed to be at $1.

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