Avalanche Foundation acquired 1.97 million AVAX tokens from Luna Foundation Guard (LFG) for a total value of approximately 53 million USD. Previously, LFG spent 100 million USD in 2022 to purchase these tokens to protect TerraUSD (UST), but the plan failed due to the devaluation of UST in May 2022 and the collapse of the Terra ecosystem.

This acquisition helps ensure that LFG does not violate the original agreement and avoids liquidation during the bankruptcy proceedings. Avalanche will use these tokens to support the development of the ecosystem through sponsorship of projects and activities.