Terra Backer Says Legal Battles Are Preventing Crypto Payouts to UST Holders
The Luna Foundation Guard (LFG) is explaining why it hasn’t paid back small holders of its collapsed stablecoin coin TerraUSD (UST).
The LFG, a non-profit organization built to support the Terra (LUNA) ecosystem, says that ongoing legal battles have made accomplishing that promise impossible for the time being.
“Since UST’s de-peg in May, there has been understandable interest in LFG’s assets and how they will be distributed. As mentioned, our goal is to distribute LFG’s remaining assets to those impacted by the de-peg, smallest holders first.
Unfortunately, due to ongoing and threatened litigation, distribution is not possible at this time. While these matters are outstanding, there can be no timeline established for resolution.”
The organization first pledged to use its remaining holdings to compensate small UST holders back in May, about a week after the stablecoin collapsed.
“The Foundation is looking to use its remaining assets to compensate remaining users of UST, smallest holders first. We are still debating through various distribution methods, updates to follow soon.”
The LFG is facing some criticism Twitter for not dispersing the funds, and the organization says it still intends to reimburse UST holders.
“Our goal remains to distribute LFG’s remaining assets to small UST holders. We will not stop advocating for our ability to follow through on these initial plans, and those waiting will be the first to know of new developments.”
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