The Luna Foundation Guard and Terraform Labs commissioned a technical audit of their efforts to defend the price of TerraUSD since it rebranded to TerraUSD Classic. The audit was intended to answer allegations posed in social media about the fate of funds transferred during efforts to defend the UST dollar peg.
The audit found that LFG spent 80,081 Bitcoin and $49.8 million in stablecoins to defend the UST peg. That was consistent with what LFG indicated in its tweets on May 16. In addition, TFL spent $613 million to defend the peg. The audit was conducted by United States consulting firm JS Held.
LFG concluded that the audit results to show there was no misuse of funds and that no funds were used to benefit insiders. Furthermore, LFG claimed the audit dispelled the allegation that LFG funds were frozen by law enforcement.
The final conclusion is unsupported in the text and is interesting in light of the fact that South Korean police requested on May 23 that exchanges freeze funds tied to LFG. In September, South Korean authorities again asked exchanges KuCoin and OKX to freeze 3,313 BTC transferred from a wallet created on Sept. 15 in the name of LFG.
