To shed light on the trading, blockchain records, and efforts of LFG and TFL to protect the price of TerraUSD (UST) between May 8th and May 12th, 2022, LFG has released the technical audit report completed by JS Held, an experienced third-party auditing company.
This was held in order to provide transparency into the peg defense action that took place in May of 2022, and in the course of doing so, to address the claims that were brought in social media about whether or not any LFG money were mismanaged, embezzled, or stolen. Have any of the LFG monies been utilized to provide benefits to company insiders? Does LFG have access to any additional wallets other than the ones that it has made public? Has any of LFG’s money been put on hold?
The audit report came to the conclusion that LFG spent around $2.8 billion (80,081 BTC and 49.8 million in stablecoins) to protect UST’s peg. Furthermore, in order to protect the value of the UST peg, TFL went above and beyond and paid $613 million of its own cash. Evidently, this puts an end to the claims that were made before, according to the company.
However, some people remain skeptical. FatMan Terra says this is a major step toward transparency, but he still has some doubts. He mentioned there are no trade records for how much LFG claimed to spend using the Jump platform. Secondly, if UST’s peg was defended cleanly, there would be a steady inflow of trade. Staggered purchasing and TFL selling UST raises suspicions, according to the Terra insider.
Another mind-boggling fact to him is that TFL spent a total of $1 billion on LUNA during the depeg, netting $268 million. There is no reasonable explanation for these numbers. So much LUNA was being bought and dumped; why? FatMan has tagged Do Kwon himself, directly asking for clarifications to his confusions.
