{"id":510929,"date":"2022-11-16T21:30:00","date_gmt":"2022-11-16T18:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/terra-labs-luna-guard-commission-audit-to-defend-against-allegations-of-misusing-funds\/"},"modified":"2022-11-16T21:30:00","modified_gmt":"2022-11-16T18:30:00","slug":"terra-labs-luna-guard-commission-audit-to-defend-against-allegations-of-misusing-funds","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/terra-labs-luna-guard-commission-audit-to-defend-against-allegations-of-misusing-funds\/","title":{"rendered":"# Terra Labs, Luna Guard commission audit to defend against allegations of misusing funds"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a4e8be48a21f\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a4e8be48a21f\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/terra-labs-luna-guard-commission-audit-to-defend-against-allegations-of-misusing-funds\/#%E2%80%9D_Terra_Labs_Luna_Guard_commission_audit_to_defend_against_allegations_of_misusing_funds_%E2%80%9C\" >&#8221; Terra Labs, Luna Guard commission audit to defend against allegations of misusing funds &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Terra_Labs_Luna_Guard_commission_audit_to_defend_against_allegations_of_misusing_funds_%E2%80%9C\"><\/span>&#8221; Terra Labs, Luna Guard commission audit to defend against allegations of misusing funds &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvOTI2NzNhNDAtMjlkOS00Zjk3LTkzMmMtYzVhNzgzMjJiYjUyLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-887bb764>The Luna Foundation Guard (LFG) and Terraform Labs (TFL) commissioned a technical audit of their efforts to defend the price of TerraUSD (UST) between May 8 and 12, 2022. The audit was intended to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/medium.com\/terra-money\/lfg-technical-audit-report-ddaf3f51e7d\">answer<\/a>\u00a0\u201callegations posed in <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social media<\/a>\u201d about the fate of funds transferred during efforts to defend the UST dollar peg, according to the LFG blog.<\/p>\n<p>The audit found that LFG spent 80,081 Bitcoins (BTC) and $49.8 million in stablecoins (about $2.8 billion at the time) to defend the UST peg. That was consistent with what LFG indicated in its tweets on May 16. In addition, TFL spent $613 million to defend the peg. The audit was conducted by U.S. consulting firm JS Held.<\/p>\n<p>LFG concluded that the audit results show there was no misuse of funds and no funds were used to benefit insiders. Furthermore, LFG claimed the audit dispelled the allegation that \u201cLFG fund [were] frozen by law enforcement.\u201d Rather, \u201call LFG funds are kept in self-hosted wallets, have not moved since the May 16th tweet, and have not been frozen.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">1\/ A third party audit of LFG and TFL&#8217;s peg defense activity during May 2022 has been published: <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/3vwSBhQcNq\">https:\/\/t.co\/3vwSBhQcNq<\/a><\/p>\n<p>\u2014 Do Kwon  (@stablekwon) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/stablekwon\/status\/1592874492224999424?ref_src=twsrc%5Etfw\">November 16, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>The final conclusion is unsupported in the text and is interesting in light of the fact that South Korean police requested on May 23 that exchanges freeze funds toed to LFG. In September, South Korean authorities again asked exchanges KuCoin and OKX to freeze 3,313 BTC transferred from a wallet created Sept. 15 in the name of the LFG. <\/p>\n<p><strong><em>Related: Terraform Labs claims case against Do Kwon is \u2018highly politicized:\u2019 WSJ<\/em><\/strong><\/p>\n<p>The LFG blog quoted Terraform Labs founder Do Kwon, who faces criminal charges in South Korea and whose current whereabouts are unknown, as saying:<\/p>\n<blockquote><p>\u201cIt is important to distinguish between Terra\u2019s case, where a transparent, open-source decentralized stablecoin failed to maintain peg parity and its creators spent proprietary capital to try to defend it, and failure of centralized custodial platforms where its operators misused other people\u2019s money (customer funds) for financial gain.\u201d<\/p><\/blockquote>\n<p>In the Twitter thread announcing the audit, Kwon wrote, \u201cMany of you lost a lot of money in UST &#8211; for this I am sorry. While the system was transparent and open source, _I_ as its creator should have understood and communicated its risks better.\u201d<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/terra-labs-luna-guard-commission-audit-to-defend-against-allegations-of-misusing-funds\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Terra Labs, Luna Guard commission audit to defend against allegations of misusing funds &#8220; The Luna Foundation Guard (LFG) and Terraform Labs (TFL) commissioned a technical audit of their efforts to defend the price of TerraUSD (UST) between May 8 and 12, 2022. The audit was intended to answer\u00a0\u201callegations posed in social media\u201d about&#8230;<\/p>\n","protected":false},"author":1,"featured_media":510930,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvOTI2NzNhNDAtMjlkOS00Zjk3LTkzMmMtYzVhNzgzMjJiYjUyLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75493,117,71006],"class_list":["post-510929","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-stablecoin","tag-business","tag-fraud"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/510929","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=510929"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/510929\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/510930"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=510929"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=510929"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=510929"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}