Crypto News Today- Luna Foundation has moved $95 million in cryptocurrency to a new wallet, citing enhanced security

Luna Foundation transferred $95 million in crypto assets to a new wallet for improved security

Crypto News– The Luna Foundation Guard (LFG) has moved around $95 million in cryptocurrency to a new wallet as part of their recent efforts to enhance the security of their funds.

According to on-chain data from blockchain analysis firm Arkham Intelligence, the Foundation transferred 1.974 million AVAX tokens, worth $71.2 million, and 39,500 BNB, approximately valued at $23.5 million, to a new address identified as 0x13463Aab3ECcE77Cfd8Cc28fA498a5F9DB242e27 earlier today, May 31. This wallet first received test transactions from the Foundation on May 17.

Even after these transfers, LFG’s reserve dashboard indicates that the Foundation still holds roughly $161 million. This includes $71.36 million in AVAX, $45 million in UST, $23.38 million in BNB, and about $21 million in BTC, among other assets.

LFG, a non-profit organization dedicated to supporting the Terra ecosystem, faced significant scrutiny in 2022 due to its Bitcoin transactions during the crash of Terra’s algorithmic stablecoin, UST.

What motivated the Luna Foundation to make the transfers?

In a social media post on May 28, the Luna Foundation Guard (LFG) announced that it was transitioning some of its assets from multi-signature wallets to a more secure direct custody solution. They stated:

To enhance security of LFG funds, LFG is set to transition assets held in LFG multi-sig wallets to a robust direct custody solution in the coming days.

These recent transactions are in line with this announcement and involve the wallet previously mentioned by the Foundation.

This development also comes on the heels of an agreement reported between the US Securities and Exchange Commission (SEC), the bankrupt Terraform Labs, and its former CEO, Do Kwon. While the specifics of the settlement remain unclear, Judge Jed Rakoff has asked both the financial regulator and the defendants to submit supporting documents by June 12. Back in April, a US District Court for the Southern District of New York found the now-defunct company and its founder, Kwon, guilty of civil fraud.

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