The Luna Foundation Guard Allegedly Sent 52k Bitcoin to Gemini and 28k to Binance to Try Stabilize UST's Peg
It is Not Clear Whether the Luna Foundation Guard Sold the Bitcoin
Mr. Martin was quoting an analysis done by the team at Elliptic.co, which highlighted that the transfers of Bitcoin by the LFG started on the morning of May 9th. The first transaction by the LFG was worth 22,189 BTC and was sent to a new address. Later on, another 30k BTC was sent from other LFG wallets to the same address. Within hours, 52,189 BTC was sent to a single account at Gemini. On May 10th, a separate 28,205 BTC was sent to Binance.
The infographic below further gives a detailed flow of the funds.
The report further clarified that it was ‘not possible to trace the assets further or identify whether they were sold to support the UST price.’
37k Bitcoin had Been Loaned to Market Makers on May 9th
Similarly, the team at CryptoQuant had investigated the movement of the LFG’s Bitcoin and concluded that 37k Bitcoin moved into Gemini on May 9th.
However a day earlier, a similar amount had left Gemini to other exchanges. The deposit on May 9th on Gemini did not cause a significant increment in trade volume on Gemini, but it went on to skyrocket in other exchanges.
The 37k Bitcoin mentioned above had been loaned to market makers to attempt to stabilize USTs peg. The Luna Foundation Guard had gone ahead and alerted the crypto community on the movement of the 37k Bitcoin through the following tweet.
Below is the new LFG $BTC wallet address: https://t.co/9t0NX3VEMI
Last clip withdrawn by the LFG was ~37K BTC. Similar to the last deployment, it has been loaned to MMs.
Very little of the recent clip has been spent but is currently being used to buy $UST.
— LFG | Luna Foundation Guard (@LFG_org) May 9, 2022
Do Kwon Had Indicated that Terra Will Release Documentation on the Movement of LFG’s Bitcoin
As earlier mentioned, the movement of the LFG’s Bitcoin reserves has been the subject of speculation for the last few days. Consequently, Do Kwon had requested patience in documenting the movement of the funds during this trying period for the team at Terra. He said:
We are currently working on documenting the use of the LFG BTC reserves during the depegging event. Please be patient with us as our teams are juggling multiple tasks at the same time.
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