After the collapse of the once-stable Terrausd (UST) coin, a number of people wondered where the Luna Foundation Guard (LFG) bitcoin had gone, as the money was supposed to be used to defend the $1 parity. On Friday, blockchain intelligence and analytics firm Elliptic published a blog post summarizing where bitcoin is being sent, according to the company’s network monitoring tools.
LFG Bitcoin Stash deposited on 2 cryptocurrency exchanges according to Elliptic’s Blockchain Analytics
While thinking about the recent chaos in the cryptocurrency market and the implosion of Terra stablecoin, a large number of people were on the forums and social media. Requested Question: “Where are LFG’s Bitcoin Reserve?” For example, this weekend on Twitter one individual books:
The Luna Foundation Guard (LFG) had more than $3 billion in bitcoin reserves before the Luna Treasurer crisis began. But LFG’s reserve wallet is now empty but no bitcoins have been reported to quell the crisis. Then where did the Bitcoins go? People need answers.
Furthermore, on May 13, founder Terra Do Kwon He told the audience that the team was planning to update the crypto community on the topic of Bitcoin (BTC) reserves.
“We are currently working on documenting the use of LFG BTC reserves during the decoupling event,” Kwon She said. “Please be patient with us as our teams are multitasking at the same time.” Following the Kwon thread on Twitter, blockchain analytics firm Elliptic published a blog post explaining LFG’s BTC moves in more detail.
When non-profit organization LFG decided to move bitcoin on May 9, Elliptic’s blockchain analytics software monitored the situation. After LFG revealed that it will loan $750 million in BTC to market makers, Elliptic blog post details which Kwon explained that LFG will use BTC.”to trade. Elliptic software then detected two transactions worth 52189 BTC that were sent to a new address linked to the LFG store.
80,394 bitcoins moved from LFG cache
In addition to 52,189 BTC, LFG holds another 28,205 BTC wallets, and LFG’s entire Bitcoin reserve has been added to approximately 80,394 Bitcoin (BTC). According to Elliptic, all funds were sent to Binance and Gemini amidst the market chaos.
“The entire 52,189 BTC was subsequently transferred to a single account at Gemini, the US-based cryptocurrency exchange — via multiple bitcoin transactions,” Elliptic said on Friday. “It is not possible to trace the assets further or determine whether they were sold to support the price of the underground reservoirs.” The blog post adds:
This left 28,205 bitcoins in terra reserves. At 1 a.m. UTC on May 10, all of this was transferred, in one transaction, to an account on crypto exchange Binance. Again, it is not possible to determine if these assets were subsequently sold or transferred to other wallets.
Bitcoin.com News also looked at onchain movements and confirmed that the Elliptic summary was accurate. For example, the LFG bitcoin wallet interacted with this bitcoin address, and the wallet was marked as a Binance hot wallet. Oxt.me’s data has an annotation written by Ergobtc that says it is the “central hot wallet” of the trading platform. The wallet was created on October 8, 2021, and 9.5 million BTC passed through the wallet.
LFG’s Bitcoin wallet also interacted with this address which also has an oxt.me annotation saying it’s the Gemini exchange address. The address generated on June 13, 2017, saw a total of 1,284,918 BTC passed through the Bitcoin wallet. While the Binance hot wallet still contains BTC for the hot wallet services, the Gemini exchange address has zero balance on May 14, 2022.
What do you think of Elliptic’s summary of LFG bitcoin cache and movements? Tell us what you think about it in the comments section below.
photo credits: Shutterstock, Pixabay, Wiki Commons, Elliptic
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