LFG (Luna Foundation Guard), the non-profit organization responsible for Bitcoin reserves of Terraform Labs, has announced that while breaking its silence about Bitcoin reserves, it will work to compensate the losses of investors who have been hurt by the destabilization of the algorithmic cryptocurrency UST.

In the statement made by LFG on Twitter, it was announced that the losses of small investors would be covered first. In the statement made by LFG, it was also said that Bitcoin reserves were used to maintain the stability of the UST since the beginning of the collapse on May 8th. Accordingly, the majority of the 80,000 BTC in the reserves were used to maintain the stability of the UST. Currently, it is seen that there are 313 BTC left in their portfolio.

TerraUSD Ust

According to the latest situation, it is known that LFG had $ 3.1 billion in reserves just a week ago, but now only $ 87 million is left. Despite spending billions of dollars in Bitcoin to overcome the UST crisis, LFG was not successful and the price of UST fell to $0.05. It is currently at $0.09.

In the statement, it is stated that LFG has resorted to using swaps and BTC reserves on the blockchain throughout the week to use loans to maintain the UST's 1 dollar stability. Comments on the statement focus on the demand for clearer information on the counterparties with which LFG trades.

After the statement made by the Luna Foundation Guard (LFG), there was no new statement from the head of the ecosystem, although the eyes were on Terra CEO Do Kwon. In turn, Binance CEO continues to make statements about Terra. Today, a statement from Ethereum co-founder Vitalik Buterin also supports the creation of a compensation plan for both names and the plan to compensate the losses of small investors first.

LFG, on the other hand, plans to use the remaining crypto assets to compensate UST users for losses. According to the statement, LFG currently holds 39,914 BNB, 1,973,554 AVAX, 1,847 billion UST and 222,713 LUNA, along with 313 Bitcoins.