Terra Says it Doesn’t Know When It’ll Pay Out Funds
The Luna Foundation Guard (LFG), a fund that focuses on the Terra ecosystem, claimed that it is unable to give a timeline for distributing assets among the investors.
In its tweet dated Oct.7, the LFG said that “ongoing and threatened litigation” is the main reason for its inability to do so, even though the fund’s reserves held more than $4 billion in assets prior to the market collapse in May.
“Since $UST’s depeg in May, there has been understandable interest in LFG’s assets and how they will be distributed. As mentioned, our goal is to distribute LFG’s remaining assets to those impacted by the depeg, smallest holders first,” the fund admits.
At the same time, it adds that “distribution is not possible at this time.”
While these matters are outstanding, there can be no timeline established for resolution [...] We will not stop advocating for our ability to follow through on these initial plans, and those waiting will be the first to know of new developments,— the fund indicates.
The reaction to the tweets was predictably negative, with many crypto users saying that the fund and the Terra co-founder Do Kwon could have completed the task long ago instead of finding scapegoats.
Meanwhile, Do Kwon who is allegedly on the run even though he assured in one of his tweets that he is making “ zero effort to hide.”
On Oct. 5, prosecutors issued an arrest warrant for Terraform Labs’s business head Yoo Mo, which resulted in his arrest in South Korea. The judge, however, reportedly dismissed the legal action.
Terra collapsed in May after stablecoin TerraUSD depegged from the United States dollar with Do Kwon refuting the allegations of malpractice.
