- Court of South Korea seized $104 million of Terra Luna co-founder
- LFG tweeted his total reserve balance was accurate
According to the third-party audit report revealed by JS HELD on 16 November, Terra Luna has spent over $2.8 billion to revive UST after a big drop. This action made everyone clear that $2.8 billion is used to spend on UST means the return of investors has not been provided for the project.
As specified by the update of 17 November, 11:00 UTC, A prosecutor’s request was approved by the Seoul Southern District Court of South Korea to seize $104 million of assets owned by the co-founder of Terraforms Labs, Daniel Shin
According to the YTN’s report Mr. Shin was making an unfair profit by selling cryptocurrency Terra Luna at high price and also leaking the transaction information of customers of Chai to Terraform labs.
As stated by JS HELD report, “TFL went above and beyond and spent $613M of its own capital to defend UST peg…To defend the UST Price Peg, LFG, TFL, and Jump were initially purchasing UST and LUNA. “
JS reports cannot proved the allegations
In May 2022, Terra USD (UST) de-pegged from the dollar due to stable coin floundering in the weekend as Luna prices dropped.
On May 8, industry researcher Mudit Gupta tweeted “UST fiasco is very fishy.”
A tweet was posted by Luna Foundation Guard on 7 May, 2022, in the tweet LFG provided the data of total reserve balance during the collapse and as per the report of JS it was accurate.
JS HELD report stated,”We confirmed that the LFG balances on May 7th and May 16th, as reported in the LFG May 16 Tweets, are accurate.”
According to this report, the allegation of embezzlement, misuse of funds, and money laundering by insiders cannot be proved, and as a matter of fact, LFG is fully satisfied in this matter. Terraform co-founder Do Kwon apologized after the release of the audit report and said, “For those of you whose minds I have not been able to change, I accept your judgment.”
Conclusion
JS HELD report shows that Teraa Luna has spent $2.8 to revive UST instead of paying back to the users, and according to this report, it has been proven that LFG does not fault this because of LFG tweets data of reserve balance. JS reports data found the same and accurate.
But every good thing has something bad; a crypto influencer welcomed the initiative of JS HELD reports, but he said that data is cherry-picked, and the trade log is missing in the reports. He claims the auditor has “cherry-picked data rather than providing the full story.”