Terra’s Bitcoin Reserves ‘”Unaccounted for”

Terra is in a death spiral, but the $3.5 billion in bitcoin reserves originally bought by the founder’s Luna Foundation Guard (LFG) foundation, which was moved to two cryptocurrency platforms, are now untraceable and untraceable. The whereabouts of these bitcoin reserves could be important if investors seek to recover losses due to the Terra blockchain crash.

Reflecting on the recent cryptocurrency market turmoil and the Terra stablecoin implosion, the cryptocurrency community is wondering: “Where is the Bitcoin reserve of Terra ecological non-profit organization Luna Foundation Guard (LFG)?”

Before the UST and LUNA crises started, LFG had a Bitcoin reserve worth over $3 billion. But the LFG reserve wallet is now empty, and Bitcoin has reportedly not been used to quell the crisis. So, where did all these bitcoins go?

The LUNA Foundation purchased a total of $3.5 billion in bitcoin between January and March, according to blockchain authentication agency Elliptic.

When Terra’s algorithmic stablecoin, UST, began to decline on the 9th, the foundation said it would use the bitcoin in its reserves to buy UST in order to maintain a 1:1 value between UST and the U.S. dollar. However, Elliptic noted that the cryptocurrency wallets used to store these bitcoin reserves were “emptied” the next day.

About $1.7 billion in bitcoin was sent from LFG’s wallet to the new address in two transactions on May 9, after Terra co-founder Do Kwon said the funds would be used to prop up UST’s parity with the U.S. dollar .

Over the next few hours, $1.7 billion in bitcoin was transferred in several transactions to a separate account on the Gemini cryptocurrency exchange. Elliptic noted that from that time on, the whereabouts of these assets could no longer be traced.

Elliptic also said that the remaining bitcoin reserves were moved to Binance in a transaction on May 10, and the company could not identify whether the bitcoin assets were sold or moved to other wallets.