Luna Foundation Guard (LFG) Moves $94.7M in Crypto Assets: Key Insights on LUNA’s Strategic Shift

  • Luna Foundation Guard (LFG) transferred $94.7 million in crypto assets to a new address as part of a move to direct custody.
  • This transfer is part of a strategic plan to enhance the security of LFG’s funds.
  • Amid these changes, Terraform Labs and Do Kwon face legal settlements with the SEC and ongoing charges from the DOJ and South Korean authorities.

Discover the latest developments in the crypto world as Luna Foundation Guard moves $94.7 million in assets to direct custody amid legal challenges.

Transition to Direct Custody and Official Announcements

LFG’s recent asset transfers were not entirely unexpected. On May 29, the Luna Foundation officially announced this significant transfer, citing a strategic move towards a “direct custody” plan. In a post on the social media platform X, LFG explained that this transition aims to enhance the security of its funds. The organization detailed that assets held in LFG’s multi-signature wallets would be moved to a more secure direct custody solution in the coming days.

Specific Wallets and Transparency

Specific wallets, including Avalanche (address 0x4…cE5) and Binance Smart Chain (address 0x3…102), are set to migrate to the new address 0x1…e27. LFG assured the public that all funds would remain trackable on their Reserves dashboard, maintaining transparency and traceability. Additionally, reports have shown that Terraform Labs and Do Kwon, the figures behind LFG, had preliminarily agreed to settle a fraud case with the SEC, although it remains unclear if this legal development is directly related to the asset movements.

Legal Settlements and Ongoing Challenges for Terraform Labs

The legal landscape for Terraform Labs and its founder, Do Kwon, is seeing significant developments. A recent settlement with the SEC marks a partial resolution to their legal troubles. The SEC had sought severe civil penalties and a potential permanent ban from the securities industry for Kwon and his company. While the details of the settlement remain undisclosed until the official June filings, it is expected to involve substantial financial reparations.

Market Reaction and Future Outlook

This move reflects the serious nature of the charges initially brought against them. However, Kwon’s legal challenges are far from over. He still faces allegations of financial crimes from both the U.S. Department of Justice (DOJ) and South Korean authorities. These ongoing cases show the complexity of the legal issues surrounding Kwon and Terraform Labs. In response to the settlement announcement, the market price of LUNA surged by 20%, indicating a positive investor reaction and a potential return of confidence in the asset’s stability. This price increase suggests that investors are hopeful about the future, despite the remaining legal hurdles.


The Luna Foundation Guard’s recent transfer of $94.7 million in crypto assets to direct custody marks a significant step towards enhancing fund security. While this move is part of a strategic plan, it occurs amidst ongoing legal challenges for Terraform Labs and Do Kwon. The partial settlement with the SEC and the positive market reaction indicate a complex but cautiously optimistic future for LFG and its associated entities. Investors and stakeholders will be closely monitoring these developments as they unfold.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

Latest News

Solana Revolutionizes Tokenized Real World Assets with Low Fees and High Speeds

Solana's Efficiency in Tokenizing Real World Assets Solana...

PEPE Coin Poised for 70% Rally Amid Bitcoin Surge to $70,000

Bitcoin is nearing an unprecedented $70,000 valuation,...

Bitcoin Reacts to Federal Reserve’s Decision to Maintain Interest Rates Amid Inflation Concerns

The Federal Reserve announced on Wednesday that...

$4.47 Billion Settlement: How Terra Luna’s Collapse in 2022 Shook the Crypto World

Terraform Labs has agreed to a significant...

PRO Analysis

XRP Price Analysis: Temporary Recovery Amid Volatile Market Conditions

XRP has recently made a notable recovery...

XRP Price Analysis: Key Levels Suggest Potential Reversal Amid Market Decline

XRP's price performance continues to fall short...

PEPE Price Analysis: Potential Drop Below $0.000010 Amidst Rising Volume

The memecoin market has been experiencing considerable...
Gideon Wolf
Gideon Wolf
GideonWolff is a 27-year-old technical analyst and journalist with extensive experience in the cryptocurrency industry. With a focus on technical analysis and news reporting, GideonWolff provides valuable insights on market trends and potential opportunities for both investors and those interested in the world of cryptocurrency.

Unlock DeFi Potential: Merlin Chain Brings Bitcoin to Ethereum’s Level with PoS and Yield Farming

Bitcoin is now pioneering its integration into the decentralized finance (DeFi) ecosystem, opening new opportunities for bitcoin holders. Merlin Chain has...

Solana Revolutionizes Tokenized Real World Assets with Low Fees and High Speeds

Solana's Efficiency in Tokenizing Real World Assets Solana provides a compelling platform for the efficient trading of tokenized assets, boasting low fees and...

PEPE Coin Poised for 70% Rally Amid Bitcoin Surge to $70,000

Bitcoin is nearing an unprecedented $70,000 valuation, recently peaking at $69,980. Investors are anticipating crucial Federal Reserve announcements, buoyed by...