LFG releases audit report: spent $3.413 billion to prevent UST from depegging, no abuse or misappropriation of funds
ChainCatcher news, third-party auditing firm JS Held stated that it has collaborated with LFG and TFL to investigate whether the two were involved in fund misappropriation or theft during the UST depegging event, whether internal personnel benefited, and whether funds were frozen.In this process, JS Held obtained access to on-chain wallets and trading accounts, as well as a large amount of raw data. The conclusions after the audit are as follows:First, LFG spent approximately $2.8 billion (80,081 BTC and 49.8 million stablecoins) to defend the peg of UST, which is consistent with LFG's tweet on May 16, 2022;Second, TFL spent over $613 million of its own capital to defend the peg of UST.Based on the above review, allegations of fund misappropriation or abuse, benefiting insiders during the defense of UST's peg, and LFG's funds being frozen by law enforcement are all unfounded.JS Held stated that although UST ultimately depegged due to insufficient capital reserves to withstand extreme market volatility, LFG fully fulfilled its responsibilities and did its best to prevent this outcome.In response, Terraform Labs founder Do Kwon said, "Although there have been continuous explosions in the crypto space recently, in the case of Terra, the transparent, open-source decentralized stablecoin failed to successfully defend its peg. We hope this report can demonstrate our commitment to transparency and the broader crypto ecosystem. We are more dedicated than ever to learning from failure and continuing to build a more transparent, decentralized, and resilient system." (source link)