Luna Foundation Guard transfers nearly $95 million worth of BNB and AVAX tokens to an unmarked address, as TerraForm Labs CEO Do Kwon agreed to a settlement deal with the SEC.
In a surprising development, a blockchain address linked to the Luna Foundation Guard (LFG), the company behind the Terra ecosystem, moved substantial amounts of cryptocurrencies earlier today.
LFG Transfers $95M Worth of BNB and AVAX
Data from the popular analytic platform Arkham Intelligence shows that the LFG address transferred 1,974,002.88 (1.97 million) Avalanche (AVAX) tokens and 39,498 Binance Coin (BNB) to an unidentified address.
The total value of the transaction, which occurred today at exactly 03:33 AM (UTC), was approximately $95 million. At press time, the LFG’s address still holds $94.27 million worth of AVAX and BNB tokens.
Meanwhile, the LFG is known for moving huge amounts of crypto assets over the years. In November 2022, the company claimed it spent a whopping $2.8 billion defending the de-pegged algorithmic stablecoin TerraUSD (UST).
At the time of writing this line, the company has not disclosed the reason behind the recent transfers, leaving the crypto community embroiled in speculation.
TerraForm Labs Founder and SEC Settles
The development comes amid reports of a settlement between Do Kwon, the founder of TerraForm Labs, and the United States Securities and Exchange Commission (SEC).
Court records show that the parties reached a settlement in principle before U.S. District Judge Jed Rakoff on May 29. Consequently, the court ordered the parties to finalize and submit the settlement terms by June 12, 2024.
Recall that in April, the SEC asked the court to impose $5.3 billion in civil penalties, disgorgement, and prejudgment interest against Kwon and TerraForm Labs. The regulatory agency made the request after the court found Kwon and Terra liable for fraud following the collapse of the Terra ecosystem.
However, the defendants proposed a significantly lower penalty of $1 million as it urged the court to dismiss the SEC’s disgorgement request.
The final terms of the settlement remain unclear at the time of writing. Nonetheless, the public could get more details about the settlement when the parties file these final terms on June 12 for the court’s approval.
As of press time, it remains unclear whether the LFG’s recently transferred $95 million worth of AVAX and BNB tokens is part of the settlement deal.
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