[Avalanche Foundation purchased $52 million worth of AVAX tokens from defunct Luna Foundation Guard]
The Avalanche Foundation has purchased back AVAX tokens from Luna Foundation Guard (LFG), according to a Thursday announcement. Founded by Do Kwon, LFG originally planned to support the algorithmic stablecoin TerraUSD (UST) by purchasing Bitcoin and other crypto assets, including AVAX. In 2022, LFG purchased $100 million worth of AVAX and handed over $200 million worth of UST and LUNA to the Avalanche Foundation. However, after UST collapsed, the Avalanche Foundation began buying back AVAX tokens.
The Avalanche Foundation recently received bankruptcy court permission to repurchase approximately 1.97 million AVAX for approximately $52 million, trading at approximately $26.50. The foundation said the funds will be used to support grants, incubation programs and community activities to promote technology development.
