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Luna Foundation Guard says its Bitcoin reserves are down to 313 from over 80,000, and it will use ‘remaining assets’ to pay back ‘smallest’ stablecoin holders

May 16, 2022, 2:09 PM UTC

The Luna Foundation Guard (LFG), an organization that supports the Terra ecosystem, shared a breakdown of its remaining assets on Monday.

Last week, Terra’s stablecoin UST began to crash far below $1, and its sister token Luna unraveled to nearly zero. Amid the chaos, many investors were wondering where LFG’s billions worth of Bitcoin went, which it originally obtained to defend UST’s peg. 

Now, after days of silence, LFG shared that it has 313 Bitcoin left, down from its original 80,394 Bitcoin reserve. LFG also noted it has a few other assets, including UST, Terra and Avalanche. 

LFG is “looking to use its remaining assets to compensate remaining users of $UST, smallest holders first,” it tweeted on Monday. “We are still debating through various distribution methods, updates to follow soon.”

Over the weekend, figures in the crypto community also suggested Terra disburse funds to “smallholders” impacted by the crash. Among them is Ethereum co-founder Vitalik Buterin.

“Coordinated sympathy and relief for the average UST smallholder who got told something dumb about ‘20% interest rates on the US dollar’ by an influencer, personal responsibility and SFYL [or sorry for your loss] for the wealthy,” Buterin tweeted on Saturday.

He added that the “obvious precedent is FDIC insurance,” being “up to $250,000 per person.” 

UST remains in the red, down 71% in the last week. It’s currently trading at 8 cents. Luna, down 100% in the last week, is worth nearly zero.

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