That Organization, Contacted with LUNC Coin, Mobilized Those 6 Altcoins!

Luna Foundation Guard (LFG), a non-profit organization affiliated with Terraform Labs, announced on Tuesday that it has moved assets in its cryptocurrency wallets to direct custody. This move follows Terraform Labs and Do Kwon, currently associated with the LUNC coin, agreeing with the US Securities and Exchange Commission (SEC) to pay a $4.5 billion penalty in the fraud case.

Is LUNC coin affected: LFG movements attract attention

LFG, affiliated with Terra, moved crypto assets such as Bitcoin to direct custody, which worried crypto investors. Terraform Labs is currently under bankruptcy protection, liquidating businesses and assets to pay the $4.5 billion penalty. LFG aims to increase the security of funds in the wallet by direct storage of crypto assets such as AVAX, BNB, BTC, LUNA and USTC (now USTC). As we reported as Kriptokoin.com, it was recently revealed that LFG moved an astronomical amount of $94.7 million worth of crypto assets to a new address. LFG transferred 1.974 million AVAX worth $71.19 million and 39,499 BNB worth approximately $23.5 million.

To maintain transparency and traceability, the LFG Reserves Dashboard was established to track funds held in wallet addresses linked to LFG. The total reserve balance is $124.36 million, with Bitcoin holdings of $19.13 million. Additionally, there is Avalanche (AVAX) worth $49.71 million and BNB worth $32.87 million. Terraform Labs CEO Chris Amani recently confirmed that LUNA assets in wallets related to TFL and LFG will be burned. The Terra Luna Classic community will also burn LUNC and USTC in wallets.

TFL sells valuable crypto projects

TFL CEO Chris Amani announced that he will continue to work while his works are liquidated following the agreement with the SEC. The company put Pulsar Finance, Station Wallet and Enterprise Protocol up for sale. The prices of the crypto assets held by the company have fallen significantly due to possible selling pressure and the general negative atmosphere in the crypto market. AVAX price fell 34% in a month, while LUNA and USTC fell over 30% and over 20% respectively.

LFG is moving crypto assets to a more secure storage solution due to security concerns. However, investors are concerned because Terraform Labs is under bankruptcy protection and has sold its assets to pay the penalty. Plans to burn crypto assets also create uncertainty in the market. Although LFG’s move seems like a positive step for security, negative developments around Terraform Labs make investors uneasy. It remains unclear how this situation will affect the cryptocurrency market in the coming period.