According to Cointelegraph, the Avalanche Foundation will repurchase 1.97 million Avalanche tokens it sold to Luna Foundation Guard (LFG) in April 2022 for $45.5 million. The tokens currently have a market value of $57.4 million.

The repurchase agreement settlement, filed in the Delaware Bankruptcy Court on Oct. 9, is currently awaiting court approval. The Avalanche Foundation said in an Oct. 11 X post that the move ensures that LFG does not violate restrictions on the use of the tokens in the original agreement and protects the tokens from the complexity of liquidation by a bankruptcy trustee.

Those tokens are now worth 42% less than the $100 million LFG paid in April 2022. Terraform Labs said the settlement will reduce litigation costs and reduce assets available for distribution to creditors.

LFG is a non-profit organization responsible for establishing and maintaining reserves for Terra’s algorithmic stablecoin, TerraClassicUSD (USTC). Less than a month later, USTC lost its peg to the U.S. dollar and fell to $0.006.

Terraform Labs also swapped $100 million worth of Terra Luna Classic (LUNC) for AVAX in April to “strategically align ecosystem incentives.” The crash wiped out nearly $60 billion in market value from LUNC and USTC.