New Analysis Reveals Terra’s Bitcoin Moved to Binance and Gemini

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  Following the demise of Terra’s once stable coin terrausd (UST) There were a lot of people were left wondering what The Luna Foundation Guard’s (LFG) bitcoin was sent, given that the funds were intended to be used to help defend the UST’s $1 parity. On Friday the company that provides blockchain intelligence and analytics, Elliptic, published a blog post detailing the exact location of the bitcoin according to its surveillance tools for networks.  

LFG Bitcoin Stash Deposited Into 2 Exchanges for Digital Currency According to the Elliptic Blockchain Analytics Software

In pondering the recent turmoil in the crypto market along with the Terra stablecoin debacle there were many participants on forums and on social media asking: “Where is LFG’s Bitcoin reserve?” For example, this weekend, on Twitter one user wrote:

 Luna Foundation Guard (LFG) was a Bitcoin account that was worth more than $3 billion before it was hit by the UST as well as the Luna crisis started. However, the LFG reserve wallet is empty. However, it was noted that Bitcoins were not used to help ease the situation. What then happened to the Bitcoins go? The public needs to know the answer.

Additionally, on May 13th Terra’s founding director Do Kwon told the public that his team planned to update the crypto community regarding the issue of bitcoin (BTC) reserves.

“We are currently working on documenting the use of the LFG BTC reserves during the de-pegging event,” Kwon stated. “Please be patient with us as our teams are juggling multiple tasks at the same time.” In response to Kwon’s Twitter post, blockchain analytics firm Elliptic posted a blog entry that explains the LFG’s BTC movements in greater in detail.

When the non-profit group LFG made the decision to transfer Bitcoin on the 9th of May, Elliptic’s Blockchain analytics software was able to monitor the move. Following the announcement that LFG disclosed that it was going to loan $750 million of BTC for market-makers, the blog provides details about how Kwon clarified that LFG used BTC BTC “to trade.” Elliptic’s system detected two transactions totaling 52,189 BTC transferred to a new address linked with the LFG stash.

80,394 Bitcoin Transferred from LFG’s Stash

Along with the 51.989 BTC, LFG held another wallet that contained 28,205 BTC The total of LFG’s bitcoin reserves totaled around eighty-three hundred thousand bitcoin (BTC) in total. According to Elliptic, the total amount was transferred via Binance and Gemini in the midst of market turmoil.

 A visual view of the onchain for the bitcoin transactions of LFG according to the blockchain monitoring company Elliptic.  

“The entirety of this 52,189 BTC was subsequently moved to a single account at Gemini, the US-based cryptocurrency exchange – across several bitcoin transactions,” Elliptic stated on Friday. “It is not possible to trace the assets further or identify whether they were sold to support the UST price.” The blog post states:

 There was a total of 28205 BTC in Terra’s reserve. In the early hours of the time of 1 a.m. UTC, on the 10th of May the money was transferred completely in one transaction and transferred to an account on Binance, a cryptocurrency trading platform. Binance. This is because it is impossible to determine if these assets were later sold or transferred to different wallets.

Bitcoin.com News also looked into the movements on the chain and confirmed that the Elliptic report was correct. For instance, there was an LFG bitcoin wallet that was able to communicate with the bitcoin address, and the wallet is listed to be a Binance hot bank. Oxt.me data contains an annotation by Ergobtc which claims it’s Binance’s trading platform’s “central hot wallet.” The wallet was launched on the 8th of October 2021. 9.5 million BTC has been transferred through it.

The bitcoin wallet of LFG also communicated with this address, which comes with the oxt.me annotation that indicates it’s a Gemini exchange account. The address was established in June 13th, 2017 has seen 1,284,918 BTC traverse this bitcoin account. Although Binance’s Binance hot wallet is still stocked with BTC for hot services and hot wallet services, the Gemini exchange account has no balance on May 14 2022.

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