Terra Luna Foundation Guard Freezes $100M Compensation Treasury

cryptonews.com:

The Luna Foundation Guard (LFG), a non-profit organization that supports the Terra ecosystem, has halted the planned distribution of $100 million from its reserve among small UST holders citing litigation concerns.

The organization announced the news in a Friday tweet, noting that they are freezing the distribution of LFG's assets due to the threat of litigation. The LFG said they currently don't have a specific date for when they might resume the distribution again.

“Our goal is to distribute LFG’s remaining assets to those impacted by the depeg, smallest holders first,” LFG tweeted. “Unfortunately, due to ongoing and threatened litigation, distribution is not possible at this time. While these matters are outstanding, there can be no timeline established for resolution.”

The foundation claimed that they are still determined to distribute LFG’s remaining assets among UST holders, starting with small ones.

Following the unprecedented collapse of Terra's algorithmic stablecoin, which wiped out around $60 billion from the crypto market, the LFG published a detailed report on how it spent its reserves to defend the UST peg. The foundation said that it will use the remaining assets, worth around $100 million, to compensate remaining UST holders.

Terra founder Do Kwon has recently made comments that contradict the LFG's claims. On Thursday, he said that his assets have not been frozen after reports alleging that South Korean prosecutors have frozen ₩56.2 billion ($39.9 million) in cryptoassets belonging to Kwon started circulating. 

"Once again, I don't even use Kucoin and OkEx, have no time to trade, no funds have been frozen," he said in response to a tweet by CoinDesk that claimed prosecutors in South Korea have frozen around