Asset distribution is 'not possible at this time': Luna Foundation Guard
The fund stated that it is unable to disperse its remaining assets to UST users, beginning with the smallest hodlers, due to "ongoing and threatened litigation."
The Luna Foundation Guard, or LFG, a Terra ecosystem fund, has stated that it cannot specify a timeline for distributing assets to clients following the depegging of stablecoin TerraUSD from the US dollar.
Due to "ongoing and threatened litigation," LFG stated in an Oct. 7 Twitter thread that it is unable to disperse its remaining assets to UST users, beginning with the smallest hodlers. Prior to the market decline in May, the fund's reserves held more than R72 billion in assets, a figure that has since been reduced to around R1.8 billion at the time of writing.
"Distribution is not currently possible," the fund stated. "While these issues remain outstanding, no timetable for settlement can be established […] We will continue to advocate for our ability to carry out these early plans, and those who wait will be the first to learn about future developments."
Crypto Responding to the statement, Twitter users chastised the fund for not providing compensation quickly enough, as well as Terra co-founder, Do Kwon for his suspected role in the collapse.
"If you guys wanted to do it, you would have done it long before the lawsuits," stated user SvNem26. "You had plenty of time, but DK blamed exchanges for not supplying data.
Following the breakdown of the ecosystem, South Korean authorities have been pursuing a case against Kwon and his Terra associates. Kwon was granted an arrest order by a South Korean court in September, and his name was added to Interpol's Red Notice list the following month. Kwon's location was unknown at the time of publishing, but he stated on Twitter that he was "making zero effort to hide."
On Oct. 5, prosecutors issued an arrest order for Terraform Labs' business head Yoo Mo, resulting in his arrest in South Korea before the legal action was apparently rejected by a judge. Kwon was also ordered by South Korea's Ministry of Foreign Affairs to submit his passport by Oct. 20 or risk having it revoked and not reissued.
