In a Twitter thread on Oct 7, LFG highlighted ongoing and impending litigation as one of the reasons it is unable to disperse its remaining assets to UST customers.
In a Twitter thread on Oct 7, LFG highlighted ongoing and impending litigation as one of the reasons it is unable to disperse its remaining assets to UST customers. Prior to the market downturn in May, the fund's reserves held more than $4 billion in assets, a figure that has now reduced to around $105 million at the time of writing.
The fund asserted that “distribution is not possible at this moment. There can be no timeframe for settlement while these issues remain pending. We will continue to advocate for our capacity to carry out these early plans, and those who are waiting will be the first to hear about any developments.”
Since the devaluation of the US dollar in May, there has been reasonable interest in LFG's assets and how they would be divided. As previously stated, our intention is to transfer LFG's remaining assets to individuals affected by the de-peg.
In response to the statement, the crypto community criticized the fund for not providing compensation in a timely manner. The community also chastised Terra co-founder Do Kwon for his apparent role in the collapse.
Following the breakdown of the ecosystem, South Korean authorities have been pursuing a case against Kwon and Terra partners. In September, a South Korean court issued an arrest order for Kwon, and Interpol added his name to its Red Notice list. Kwon's location was unknown at the time of writing, although he stated on Twitter that “he was making no attempts to hide.”
On Oct. 5, prosecutors issued an arrest warrant for Terraform Labs' business head Yoo Mo, resulting in his detention in South Korea before the legal action was apparently rejected by a court. South Korea's Ministry of Foreign Affairs also ordered Kwon to submit his passport by Oct. 20 or risk having it revoked and not renewed.
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