Onchain Analysis Report Says Terra’s Bitcoin Reserves Were Sent to Binance and Gemini – Bitcoin News

After the collapse of Terra’s once-stable coin terrausd (UST), a number of people wondered where the Luna Foundation Guard’s (LFG) bitcoin went, as the funds were supposed to be used to defend the UST’s $1 parity. On Friday, the blockchain intelligence and analytics firm, Elliptic, published a blog post that summarizes where the bitcoin was sent, according to the firm’s network surveillance tools.

LFG Bitcoin Stash Deposited Into 2 Digital Currency Exchanges According to Elliptic’s Blockchain Analytics Software

Reflecting on recent market turmoil and Terra stablecoin’s implosion, there are many people who use forums and social media to share their thoughts. asked the question: “Where is LFG’s Bitcoin reserve?” For instance, this weekend on Twitter one individual wrote:

Luna Foundation Guard had a bitcoin reserve of over $3B that it was worth before the UST and Luna crises. But the LFG reserve wallet is now empty but it was reported that Bitcoins weren’t used to calm the crisis. Where did all the Bitcoins end up? The people want answers.

Furthermore, on May 13, Terra’s founder Do KwonPublicly stated that they would update the cryptocurrency community regarding the topic of bitcoin (BTC), reserves.

“We are currently working on documenting the use of the LFG BTC reserves during the de-pegging event,” Kwon said. “Please be patient with us as our teams are juggling multiple tasks at the same time.” Following Kwon’s Twitter thread, the blockchain analytics company Elliptic published a blog post that explains the LFG’s BTC moves in more detail.

When the nonprofit organization LFG decided to move the bitcoin on May 9, Elliptic’s blockchain analytics software monitored the situation. After LFG revealed it would loan $750 million in BTC to market makers, Elliptic’s blog post details that Kwon clarified LFG would use the BTC “to trade.” Then Elliptic’s software caught two transactions worth 52,189 BTC sent to a new address tied to the LFG stash.

80,394 Bitcoin Moved From LFG’s Stash

In addition to the 52,189 BTC, LFG held another wallet with 28,205 BTC, and LFG’s entire bitcoin reserve added up to approximately 80,394 bitcoin (BTC) total. Elliptic claims that all funds were transferred to Binance and Gemini during the chaos in the markets.

“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 said 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 adds:

This left 28,205 BTC in Terra’s reserves. The entire amount was then transferred to an account on the cryptocurrency exchange Binance at 1 am UTC (May 10th). This again makes it difficult to know if the assets were transferred to or sold.

Bitcoin.com News also looked into the onchain movements and confirmed that Elliptic’s summary was accurate. This is because the LFG wallet for bitcoin interacted with this address. The wallet has been flagged as a Binance hot-wallet. Oxt.me data has an annotation written by Ergobtc that says it’s the trading platform’s “central hot wallet.” The wallet was created on October 8, 2021, and 9.5 million BTC has passed through the wallet.

LFG’s bitcoin wallet also interacted with this address which also has an oxt.me annotation that says it’s a Gemini exchange address. This address was created June 13, 2017. 1,284,918 BTC has passed through the bitcoin wallet. The Binance hot wallet contains BTC to hot wallet services. However, the Gemini address has zero balance as of May 14, 2022.

What do you think about Elliptic’s summary of the LFG bitcoin stash and movements? Comment below and let us know how you feel about the subject.

Jamie Redman

Jamie Redman is the News Lead for Bitcoin.com News. He also lives in Florida and works as a journalist covering financial technology. Redman is an active participant in the cryptocurrency community from 2011. Since 2011, Redman has been an active member of the cryptocurrency community. Redman is a prolific writer for Bitcoin.com News, with over 5,000 articles on disruptive protocols.