After Terra’s once-stable coin terrausd (UST) collapsed, many wondered where the Luna Foundation Guard (LFG) bitcoin went, as the funds were supposed to defend UST’s $1 parity. On Friday, blockchain intelligence and analytics firm Elliptic published a blog post summarizing where bitcoin is being sent, based on the company’s network monitoring tool.

LFG Bitcoin Deposited to 2 Cryptocurrency Exchanges According to Elliptic’s Blockchain Analysis Software

While reflecting on the recent crypto market turmoil and the Terra stablecoin implosion, large numbers of people on forums and social media ask Question: “Where are LFG’s Bitcoin reserves?” For example, one person on Twitter this weekend wrote:

Before the UST and Luna crises began, the Bitcoin reserves of the Luna Foundation Guard (LFG) were worth over $3B. But LFG’s reserve wallets are now empty, but Bitcoin is reportedly not being used to quell the crisis. So where has Bitcoin gone? People need answers.

Also, on May 13, the founders of Terra right of way The public is told that the team is planning to update the crypto community on the topic of Bitcoin (BTC) reserves.

“We are currently working on documenting the usage of LFG BTC reserves during the decoupling event,” Kwon said“Please be patient with our team multitasking.” Following Kwon’s Twitter post, blockchain analytics firm Elliptic published a blog post explaining LFG’s BTC movement in more detail.

When the nonprofit LFG decided on May 9 to move bitcoin, Elliptic’s blockchain analytics software monitored the situation. Elliptic’s blog post details Kwon’s clarification that LFG will use BTC after LFG revealed that it will be lending $750 million in BTC to market makerstrade. Elliptic’s software then captured two transactions worth 52,19 BTC, which were sent to new addresses associated with LFG storage.

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0,394 BTC moved LFG’s stash

In addition to 52,19 BTC, LFG holds another wallet of 28,205 BTC, and LFG’s entire bitcoin reserves add up to about 80,394 bitcoins (BTC). According to Elliptic, all funds were sent to Binance and Gemini amid the market turmoil.

Onchain Analysis Reports Terra's Bitcoin Reserves Sent to Binance and Gemini
An on-chain visualization of LFG Bitcoin transfers, according to blockchain monitoring firm Elliptic.

“The entirety of this 52,19 BTC was then transferred to an account on the U.S. cryptocurrency exchange Gemini — involving several bitcoin transactions,” Elliptic said Friday. “It is not to further trace the assets or determine whether they were sold to support the UST price.” The blog post added:

This leaves 2,205 BTC in Terra’s reserves. At 1 a.m. UTC on May 10, it was all transferred to an account on the cryptocurrency exchange Binance in one transaction. Again, it is impossible to determine whether these assets were sold or subsequently transferred to other wallets.

Bitcoin.com News also investigated on-chain movements and confirmed that Elliptic’s summary is accurate. For example, the LFG bitcoin wallet interacted with this bitcoin address, and the wallet was marked as a Binance hot wallet. The Oxt.me data has a note written by Ergobtc stating that it is a “central hot wallet” for the exchange. The wallet was created on October 8, 2021, and 9.5 million bitcoins have passed through the wallet.

LFG’s Bitcoin wallet also interacted with this address, which also has an oxt.me note stating that it is a Gemini exchange address. This address was created on June 13, 2017, and a total of 1,24,918 BTC passed through a Bitcoin wallet. While the Binance hot wallet still contains BTC for the hot wallet service, the Gemini exchange address has a zero balance on May 14, 2022.

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tags in this story

bitcoin reserves, blockchain analysis, BTC reserves, do kwon, Elliptic, Elliptic blog post, Follow the trail, lfg, Luna Foundation Gaurd (LFG), Onchain, Onchain tools, software, Terra, terra (LUNA), Terra Blockchain , Terrausd (US)

What do you think of Elliptic’s summary of LFG Bitcoin stash and movements? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is Head of News for Bitcoin.com News and a fintech reporter based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written over 5,000 articles for Bitcoin.com News on the disruptive protocols emerging today.




Image Source: Shutterstock, Pixabay, Wiki Commons, Elliptic

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