Avalanche Foundation to buy back tokens sold to LFG from Terra in 2022 settlement, pending court approval

In April 2022, Luna Foundation Guard, a Singapore-based non-profit that supported the then-collapsed Terra ecosystem with its UST stablecoin and LUNA token, purchased $100 million worth of Avalanche token stock to bolster its reserves.

However, the collapse of the Terra ecosystem in May 2022 put the future of the AVAX tokens it holds into question. Now, the Avalanche Foundation has announced that it has negotiated an agreement to buy back all 1.97 million tokens from the bankrupt Terraform Labs estate.

“This action ensures that LFG will not violate the original agreement’s restrictions on the use of the tokens and protects the tokens from the complexity of a liquidation by a bankruptcy trustee,” the Avalanche Foundation wrote in its announcement post on X.

While the Foundation did not include the financial terms of the deal in its announcement, the current value of 1.97 million Avalanche tokens is approximately $56 million at the list price, a 44% decrease from the stash’s original $100 million value.

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