Terra Says Legal Conflicts Prevent Crypto Payments to UST Holders

The Luna Foundation Guard (LFG) explains why it has not repaid investors of its failed stablecoin TerraUSD (UST).

The LFG, a non-profit organisation created to sustain the Terra (LUNA) environment, claims that continuing legal conflicts have proven it difficult to fulfil this promise at this time.

“It’s natural that many would wonder what would happen to LFG’s assets after UST’s de-peg in May. As stated, our objective is to redistribute LFG’s remaining assets to individuals affected by the de-peg, starting with the smallest investors.

Distribution is currently not possible because of a current lawsuit. As long as these concerns remain unresolved, no schedule can be created.”

In May, around one week following the collapse of the stablecoin, the group first committed to utilizing its remaining assets to pay tiny UST investors.

“The Foundation intends to utilize its remaining assets to repay the remaining holders of UST. We are currently considering other distribution strategies; updates will be forthcoming.”

The LFG has been criticized on Twitter for not distributing the assets, but the group claims it still plans to refund UST holders.

“Our objective is the distribution of LFG’s existing assets to small holders of USTs. We will continue to fight for the resources we need to implement these preliminary ideas, and everyone still holding out will be the first to hear about any breakthroughs.”

Also Read: RBI Said Private Crypto Coins Threaten Financial Stability

- Advertisement -

Comments are closed.