Avalanche Foundation has acquired 1.97 million AVAX tokens from Luna Foundation Guard (LFG), with a total value of approximately 53 million USD.

Previously, LFG had purchased these tokens for 100 million USD in 2022 to support TerraUSD (UST), but the plan failed when UST lost its value and the Terra ecosystem collapsed in May 2022.

The repurchase helps ensure that LFG does not violate the original agreement and avoids liquidation in bankruptcy proceedings. Avalanche will use these tokens to support the development of the ecosystem through funding projects and events.