Coinspeaker Luna Foundation Guard’s $95M Asset Transfer Sparks Speculation and Transparency Concerns
Luna Foundation Guard (LFG), an organization known for its role in supporting the Terra ecosystem, has sparked speculation within the cryptocurrency community after its sudden transfer of digital assets worth $94.7 million. The breakdown of the transfer includes 1.974 AVAX tokens, valued at $71.21 million, and 39,499 BNB tokens worth $23.33 million to an unmarked address.
Community Demands Transparency and Clarity from LFG
The sudden transfer of funds has resulted in various speculations. It has raised eyebrows that the movement could be part of a strategic reallocation of assets in preparation for upcoming events, or perhaps the organization is exploring new partnerships or collaborations that may require the relocation of these digital holdings.
Although the reason behind the transfer is not very clear, LFG earlier announced on May 28 on its X page that it is set to move assets toward direct custody to enhance the fund’s security. This move involves transitioning assets held in the company’s multi-signature wallets to a more secure direct custody solution. The organization promised the public that all funds would remain trackable on the LFG Reserves dashboard. The firm stated:
“To enhance the security of LFG funds, LFG_org is set to transition assets held in LFG multi-sig wallets to a robust direct custody solution in the coming days…To maintain transparency and traceability, LFG funds will remain trackable on the LFG Reserves dashboard.”
Connection to Do Kwon’s Settlement and LUNA’s Price Surge
Moreover, this sudden transfer coincided with a settlement report between Do Kwon, the founder of TerraForm Labs, and the United States Securities and Exchange Commission (SEC). According to the court records, it was revealed that the parties have agreed to a tentative settlement, with the final terms expected to be submitted to the court by June 12.
The SEC has previously requested a $5.3 billion penalty on Do Kwon and Terraform for fraud and misleading investors, but the defendants are arguing for a much smaller penalty of $1 billion and are seeking to dismiss part of the SEC request, as Kwon has denied any wrongdoing.
While it remains unclear whether the LFG’s recently transferred $95 million is directly related to the settlement deal, the crypto community will be keeping a close eye on the development and looking forward to more clarity about the situation.
LUNA Breaks Key Resistance and Could Continue Rally
Amid the speculation surrounding the fund transfer, the price of LUNA spiked by over 15% in the last 24 hours, and more than 35% on May 30 alone, breaking out of an accumulation phase that started on April 14. If the price is able to successfully retest the broken resistance, we expect to see a continued bullish rally to around $0.8, which will represent a 20% spike from its current price. However, it is expected that you carry out due diligence before banking on the price direction of any token.next
Luna Foundation Guard’s $95M Asset Transfer Sparks Speculation and Transparency Concerns