A third-party audit report released by JS Held on Nov. 16 revealed that Luna Foundation Guard spent $2.8 billion after the UST de-peg to come out of the debacle. Notably, it has become clear that the reserves were not used to pay back the investors of the project.
In addition, the report states, “TFL went above and beyond and spent $613M of its own capital to defend UST peg…To defend the UST Price Peg, LFG, TFL, and Jump were initially purchasing UST and LUNA. “
Audit declares no misappropriation of funds
Earlier in May, the algorithmic stablecoin Terra USD (UST) de-pegged from the dollar due to an imbalance. The imbalance is related to the burning and minting mechanism of the ecosystem. The report further declared the tweets put out by LFG during the collapse as accurate concerning the company’s reserve balances.
