The Luna Foundation Guard (LFG) and Terraform Labs (TFL) commissioned a technical audit of their efforts to defend the price of TerraUSD (UST) between May 8 and 12, 2022. The audit was intended to answer “allegations posed in social media” about the fate of funds transferred during efforts to defend the UST dollar peg, according to the LFG blog.
The audit found that LFG spent 80,081 Bitcoins (BTC) and $49.8 million in stablecoins (about $2.8 billion at the time) to defend the UST peg. That was consistent with what LFG indicated in its tweets on May 16. In addition, TFL spent $613 million to defend the peg. The audit was conducted by U.S. consulting firm JS Held.
LFG concluded that the audit results show there was no misuse of funds and no funds were used to benefit insiders. Furthermore, LFG claimed the audit dispelled the allegation that “LFG fund [were] frozen by law enforcement.” Rather, “all LFG funds are kept in self-hosted wallets, have not moved since the May 16th tweet, and have not been frozen.”
1/ A third party audit of LFG and TFL’s peg defense activity during May 2022 has been published: https://t.co/3vwSBhQcNq
— Do Kwon (@stablekwon) November 16, 2022
The final conclusion is unsupported in the text and is interesting in light of the fact that South Korean police requested on May 23 that exchanges freeze funds toed…
