JS Held Issues Audit Report of Luna Foundation Guard and Terraform Labs
An expert 3rd-party auditing platform, JS Held, was appointed to organize a technical audit of Terraform Labs (TFL) and Luna Foundation Guard (LFG). The platform’s report offers complete transparency in the case of blockchain records, trading, as well as the endeavors taken by both the targeted projects to shield TerraUSD’s (UST) price between the 8th and 12th of May this year.
LFG Cooperates with JS Held to Conduct Its Transparent Technical Audit
TFL and LFG have been cooperating with JS Held for the provision of transparency in the case of the peg defence operation witnessed in May 2022. Apart from that, this endeavor was also focused on responding to the allegations posed on social media. These accusations take into account the stealing, embezzlement, or misappropriation of the LFG funds. The other allegations include the utilization of funds to assist insiders, keeping funds somewhere else than their openly declared wallets, as well as potential suspension of the LFG funds.
Related: Terra LUNA’s FDV Reversed by Terra Classic
For assistance in the audit procedure, JS Held received access to trading accounts as well as the on-chain wallets at centralized exchanges utilized on the behalf of the peg defense. The audit company additionally operated with crucial raw data rather than depending mainly on the representations of TFL. The audit report found that nearly $2.8 billion (up to 49.8M worth of stablecoins and 80,081 BTC) was spent by LFG to defend the peg of UST.
This was consistent with the Twitter posts shared by LFG on the 16th of May 2022. Apart from that, according to the report, TFL moved ahead to spend $613 million from its capital for the defense of the UST peg. As expressed by the report, the entirety of the LFG funds got expended to defend the peg parity of UST with the dollar. The only remaining funds were the remaining balances of LFG. In this way, the above-mentioned accusations are naturally refuted.
JS Held’s Report Dispels the Allegations Posed against LFG
In line with the findings, no funds were misused as they were utilized for UST’s peg defense. The entirety of the peg defense took place in the open markets and no particular preference was made for any of the parties, dispelling the funds’ usage for insiders’ benefits. The LFG funds have been held in self-hosted wallets without being shifted since the tweet of the 16th of May and the platform has not frozen them.
