According to PANews on November 7, as reported by The Block, the Avalanche Foundation has been approved by the court to repurchase 1.97 million AVAX tokens acquired from the bankrupt Luna Foundation Guard (LFG), valued at approximately $52 million. This transaction marks the official end of the relationship between Avalanche and the now-defunct Terra blockchain project.
In 2022, the LFG founded by Do Kwon attempted to stabilize its algorithmic stablecoin TerraUSD (UST) by holding reserves of crypto assets, including AVAX, but the strategy failed, causing severe market turbulence and impacting numerous blockchain projects. After this repurchase, the Avalanche Foundation plans to use the funds for ecosystem development, including funding, incubators, and community activities.
Furthermore, Do Kwon is still detained in Montenegro, and both the United States and South Korea have requested extradition.
