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Following Terra’s Do Kwon settlement with the SEC, the Luna Foundation Guard [LFG] address has suddenly had many transfers. On-chain sleuths have detected that between 11:29 and 11:33 UTC+8, LFG has moved roughly 2 million AVAX [about $71.2 million] and 39.500k BNB [about 23.5 million USD] to the unmarked address: 0x13…2e27. Although there is no direct relationship between the LFG’s fund transfer and the legal developments, the event’s timing has raised wild speculation.
Meanwhile, Terraforms Labs, another key player in the Terra ecosystem, has come under intense scrutiny for its bankruptcy proceedings, especially in the case of allegedly attempting to seal reimbursements and retention payments to key employees. This lack of transparency is significant because it reflects ongoing concerns about how TFL has managed its finances and handled its obligations to employees and investors.
The bankruptcy trustee has filed an objection, arguing that the Terra community and the public have the right to know how TFL operated leading up to its bankruptcy filings. This push for transparency aligns with the broader legal and regulatory scrutiny TFL and Do Kwon are facing. Another crucial argument highlighted by one observer was that payments to key employees.
Do Kwon: TFL Under the Radar
Just days before bankruptcy, the firm released $6.5 million in incentive payouts to key employees, raising questions about the priorities and decision-making within TFL. This could be seen as an attempt to secure loyalty or mitigate risks to key personnel amidst the financial collapse, which mirrors the concerns about the sudden fund transfers from the Luna Foundation Guard.
The US Trustee even points out, using CEO Cannon Fleece’s own sworn statements, that TFL has no competitors and their operations use open-sourced software, so there’s no inherent trade secret or commercial competitive advantage to protect in redacting data.
Despite not being directly related, both TFL and LFG are likely to be under the radar of regulators and legal authorities due to their interconnected operations and shared leadership. The legal issues faced by Do Kwon and the settlement with the SEC could extend to scrutiny of the Luna Foundation Guard’s activities, especially if there are concerns about fund management and investor protection.
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