After the collapse of Tera’s one-time stablecoin Terasd (UST), many wondered where the Luna Foundation Guard (LFG) bitcoin went, as the funds were to be used to protect the $1 parity of UST. On Friday, Elliptic, a blockchain intelligence and analytics firm, published a blog post summarizing where the bitcoins were sent, according to the firm’s network monitoring tool.
LFG Bitcoin Stash Deposited at 2 Digital Currency Exchanges According to Elliptic’s Blockchain Analytics Software
Reflecting on the recent crypto market chaos and the explosion of the Terra stablecoin, a large number of people have been on forums and social media. Asked Question: “Where is LFG’s bitcoin reserve?” For example, a person on Twitter this weekend wrote,
Before the start of the UST and Luna crisis, the Luna Foundation Guard (LFG) had bitcoin reserves worth over $3 billion. But the LFG Reserve wallet is now empty but it was reported that bitcoin was not used to quell the crisis. Where did bitcoin go then? People need answers.
Also, on May 13, the founder of Terra do kwon Told the public that the team was planning to update the crypto community on the topic of bitcoin (BTC) reserves.
“We are currently working on documenting the use of LFG BTC Reserve during the de-pegging event,” Kwon said, “Please be patient with us as our teams are doing many things at the same time.” Following Kwon’s Twitter thread, blockchain analytics firm Elliptic published a blog post detailing LFG’s BTC move.
When the non-profit organization LFG decided to move to bitcoin on May 9, Elliptic’s blockchain analytics software oversaw the situation. LFG reveals it will loan $750 million in BTC to market makers, Elliptic’s blog post explains, with Kwon clarifying that LFG will use BTC “for businessElliptic’s software then sent two transactions of 52,189 BTC to a new address linked to the LFG Stash.
80,394 bitcoin transferred from LFG’s Stash
In addition to 52,189 BTC, LFG held another wallet with 28,205 BTC, and LFG’s full bitcoin reserves totaled approximately 80,394 bitcoins (BTC). According to Elliptic, all funds were sent to Binance and Gemini amid the market chaos.
“The entirety of this 52,189 BTC was subsequently transferred to a single account at US-based cryptocurrency exchange Gemini – in multiple bitcoin transactions,” Elliptic said on Friday. “It is not possible to further trace the assets or identify whether they were sold to support the UST value.” The blog post adds:
This leaves 28,205 BTC in Terra’s reserves. On May 10th at 1 a.m. UTC, it was transferred entirely, in a single transaction, to an account on the cryptocurrency exchange Binance. Again it is not possible to identify whether these assets were sold or subsequently transferred to other wallets.
Bitcoin.com News also noted the onchain movement and confirmed that Elliptic’s summary was accurate. For example, the LFG bitcoin wallet interacted with this bitcoin address, and the wallet was marked as a Binance hot wallet. The Oxt.me data has an annotation written by Ergobtc that says it is the “central hot wallet” of the trading platform. The wallet was created on October 8th, 2021 and 9.5 million BTC has passed through the wallet.
LFG’s bitcoin wallet also interacted with this address which also has an oxt.me annotation that says it is a Gemini exchange address. A total of 1,284,918 BTC pass through a bitcoin wallet in an address created on June 13, 2017. While the Binance Hot Wallet still holds BTC for Hot Wallet services, the Gemini exchange address has a zero balance as of May 14, 2022.
What do you think of Elliptic’s LFG Bitcoin Stash and Movement Summary? Let us know what you think about this topic in the comment section below.
image credit: Shutterstock, Pixabay, WikiCommons, Elliptical
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