Luna Foundation Guard Moving Crypto Holdings, What's Happening?

Highlights

Luna Foundation Guard confirms moving crypto holdings to a direct custody solution for security.
Terraform Labs and Do Kwon to pay $4.5 billion in total penalties in the civil fraud case by the U.S. SEC.
Crypto linked to TFL and LFG continue to fall.

Luna Foundation Guard, the non-profit linked to Terraform Labs, on Tuesday said it moved the crypto holdings in its wallets to a direct custody solution. The move comes following a settlement with the U.S. Securities and Exchange Commission (SEC) by Terraform Labs and Do Kwon to pay $4.5 billion in total penalties in the civil fraud case.

Luna Foundation Guard (LFG) Shifts Funds

Terra-linked Luna Foundation Guard (LFG) shifts funds including Bitcoin to a direct custody solution, the nonprofit announced in a post on X platform on June 25. This has sparked concerns among crypto investors as Terraform Lab, which is currently under bankruptcy protection, winding down businesses and assets to pay $4.5 billion as part of the settlement with the U.S. SEC.

LFG claims direct custody of crypto assets such as AVAX, BNB, BTC, LUNA, and UST (now USTC) will help improve the security of funds in the wallets. CoinGape recently revealed that LFG shifted a whopping $94.7 million in crypto holdings to a new address. It transferred 1.974 million AVAX worth $71.19 million and 39,499 BNB approximately $23.5 million.

The LFG Reserves Dashboard is established to track funds available in LFG-linked wallet addresses for continued transparency and traceability. The total reserve balance is $124.36 million, with Bitcoin holdings of $19.13 million. It has Avalanche (AVAX) worth $49.71 million and BNB worth $32.87 million.

Terraform Labs CEO Chris Amani recently confirmed burning LUNA holdings in wallets related to TFL and LFG. Terra Luna Classic community will also burn LUNC and USTC in the wallets.

Also Read: Bitcoin ETFs Continue To Bleed With Zero Inflows, Institutions In Panic?

TFL Sells Major Crypto Projects

TFL CEO Chris Amani after the settlement with the SEC revealed that it’s products will continue to run while they wind down. The company has put Pulsar Finance, Station Wallet, and Enterprise Protocol for selling.

Prices of crypto assets held by the company have dropped immensely due to concerns over selloff and overall negative sentiment in the crypto market. AVAX price has dropped 34% in a month, while LUNA and USTC also fell over 30% and 20%, respectively.

Also Read: Altcoins Bounce Back With BTC Dominance Dropping, Is the Bottom In?

TAGS
Terraform Labs

Recommended
Price Analysis

Best Crypto Presales To Invest In September 2025 – Top Upcoming Presale Tokens

Best Crypto AI Trading Bots In 2025

Top Meme Coins To Buy In September 2025

Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.