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Terra Backer Explains Why Not Distributing Compensation Funds

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Terra Backer Explains Why Not Distributing Compensation Funds 2

The Luna Foundation Gaurd (LFG) claimed that legal hurdles are a big problem in not giving compensation to the crypto Investors, who lost funds in TerraUSD. 

LFG is a non-profit organization behind the Terra (Luna) project. In May of this year, LFG promised that it will distribute holding funds among the small TerraUSD (UST) holders, who faced loss because of the dependence on the value of UST stablecoin in May of this year, during extreme volatility in the market.

On 7 October, LFG took to Twitter to explain the problems that it is facing. The non-profit organization said that they aimed to distribute the remaining assets among the people, who lost funds in UST investment (or say hold & use), and people already discussed this thing. 

The organization further said that they are facing huge legal hurdles because of the collapse of Terra (Lunc) & UST stablecoin and in this situation they can’t distribute the funds. 

“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,” LFG said

TerraFatMan, proclaimed former Insider of the Terra project, criticized LFG and claimed that the team is only passing fake promises because LFG funds have been frozen. 

Lunc & UST interconnected protocol

The UST stablecoin and Lunc coin were connected by a protocol to maintain the value of each UST coin equal to $1 but this technology grabbed huge traction in the crypto industry.

In May of this year, under the extreme volatility in the crypto industry, Lunc & UST stablecoin failed to survive and collapsed badly. 

Read also: I own a bit of Uniswap & Aave, Says RealVision CEO

Terra Backer Explains Why Not Distributing Compensation Funds

 

https://bitcoinik.com/terra-backer-explains-why-not-distributing-compensation-funds/feed/

https://bitcoinik.com/terra-backer-explains-why-not-distributing-compensation-funds/feed/

 

 

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