The Luna Foundation Guard Fund, or LFG, a fund focused on the Terra ecosystem, said it was unable to provide a timeline for the distribution of assets to users after the TerraUSD stablecoin was decoupled from the US dollar.

On October 7, on Twitter, the LFG referred to the “ongoing and threatening lawsuit” over its inability to distribute the remaining assets to land tank users, starting with the youngest inventors. The fund held over $4 billion in assets prior to the market downturn in May, and that amount has fallen to around $105 million at press time.

“Distribution is not possible at the moment,” the fund said. “While these issues are under consideration, no timetable can be set for their resolution […] We will not stop arguing about our ability to fulfill these initial plans, and those who wait will be the first to know about new developments. ”

1/ After depegging to the US dollar in May, there was an understandable interest in LFG’s assets and their distribution. As mentioned earlier, our goal is to distribute the remaining LFG assets to those affected by the demarcation, primarily smaller owners. https://t.co/VOTQDkQZ90

– LFG | Luna Foundation Guard (LFG_org) October 7, 2022
Crypto Twitter users who reacted to the announcement criticized the fund for not offering compensation quickly and criticized Terra co-founder Do Kwon for his alleged involvement in the collapse.

“If you wanted to do it, you would have already done it long before the lawsuits,” user SvNem26 said. “You had plenty of time, but instead DK blamed the exchanges for not providing the data.”

Related: Terra Blockchain Ecosystem Collapse Forced Talent Migration

South Korean authorities filed a case against Kwon and Tera’s partners after the ecosystem collapsed. In September, a South Korean court issued an arrest warrant for Kwon, after which Interpol put his name on its red list. At the time of publication, Kwon’s whereabouts were unknown, but he said on Twitter that he “didn’t try to hide.”

On October 5, prosecutors issued an arrest warrant for Terraform Labs business manager Yu Mo, leading to his arrest in South Korea before a judge reportedly dropped the trial. The South Korean Foreign Ministry has also ordered Kwon to turn in his passport by October 20 or risk having the document invalidated and not reissued.

Source: CoinTelegraph

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