The Avalanche Foundation announced on November 1 that it had received court approval and successfully repurchased approximately 1.97 million AVAX tokens worth US$52 million. The tokens were originally sold in early 2022 to Luna Foundation Guard (LFG), a group founded by Terraform Labs founder Do Kwon to prevent the UST/LUNA token price mechanism from collapsing.
($84 million leveraged a 40 billion financial empire, the whole story of UST’s collapse)
The consequences of Avalanche swapping chips
Before the collapse of the UST stablecoin, Do Kwon launched LFG as an intermediary and announced that it would purchase more than $10 billion in Bitcoin and other crypto assets as reserve assets, including $100 million in AVAX tokens that were included in LFG’s balance sheet at the time. The Avalanche Foundation held $200 million worth of UST and LUNA tokens, and the two aimed at strengthening their respective ecosystems through coordination with each other.
After the collapse of UST, the Avalanche Foundation continued to seek to repurchase AVAX tokens, and finally received approval from the bankruptcy court on November 1. Aytunç Yildizli, CEO of Avalanche, said: "We are pleased to complete this repurchase, which represents our commitment to the sustainable development of the Avalanche ecosystem." The AVAX tokens that Avalanche promises to repurchase will be used to support community grants, incubation projects and various Activities to accelerate technology and ecosystem development.
On the other hand, Do Kwon is still detained in Montenegro. The United States and South Korea have submitted extradition requests, but they continue to be delayed.
This article Avalanche regains control of 52 million mg AVAX, defuses Terra swap chip bomb first appeared on Chain News ABMedia.
