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29 de sept. de 2025 Despite attempts from the Luna Foundation Guard to use their $1.5 billion in BTC reserves to defend the UST peg and even halting transactions on the Terra blockchain The Luna Foundation Guard updated the world concerning its crypto-asset reserves and shared a promise to compensate the remaining users of failed stablecoin UST. Key Takeaways The Luna Foundation Guard revealed Monday that it had spent almost all of its Bitcoin reserves in its failed attempt to restore UST's peg. The LFG The announcement reads: “The Foundation is looking to use its remaining assets to compensate remaining users of $UST, smallest holders first. We are still debating People from the space, including Ethereum’s founder Buterin, had dropped their suggestions recently w.r.t. how Terra could relieve its small investors by using funds from NEW DELHI: The Luna Foundation Guard (LFG), a non-profit organisation that supports the Terra ecosystem, has announced plans to compensate remaining users of And it is now looking forward to using its remaining assets to compensate the remaining users of UST and would prioritize the smallest HODLers first. Even Ethereum The Luna Foundation Guard (LFG), a nonprofit organization created specifically to support Terra Ecosystem, has disclosed details regarding the recent collapse of Following the collapse of Terra’s UST stablecoin, questions have been asked about the fate of the $3.5 billion in Bitcoin (BTC) held in reserve to help prevent exactly

Terra Finally Outlines Reserve Holdings, Looks to Compensate UST Users: Will it Be Enough?

The dust is still settling after the dramatic collapse of Terra's UST stablecoin and its sister token Luna, but the Luna Foundation Guard (LFG) is finally providing some clarity on its reserve holdings and plans for compensating affected users. Questions have been swirling following the collapse of Terra’s UST stablecoin, especially concerning the fate of the $3.5 billion in Bitcoin (BTC) held in reserve to help prevent exactly what happened.

The LFG, a nonprofit organization created specifically to support the Terra Ecosystem, has disclosed details regarding the recent collapse of UST and how its reserves were deployed. Despite attempts from the Luna Foundation Guard to use their $1.5 billion in BTC reserves to defend the UST peg and even halting transactions on the Terra blockchain, the peg ultimately failed.

LFG Reveals Bitcoin Reserve Spending

The Luna Foundation Guard updated the world concerning its crypto-asset reserves and shared a promise to compensate the remaining users of failed stablecoin UST. Key Takeaways: The Luna Foundation Guard revealed Monday that it had spent almost all of its Bitcoin reserves in its failed attempt to restore UST's peg.

Compensation Plans for UST Holders Prioritize Smallest Holders

The announcement reads: “The Foundation is looking to use its remaining assets to compensate remaining users of $UST, smallest holders first. We are still debating…” This focus on smaller holders aligns with suggestions from figures like Ethereum’s founder Buterin, who recently offered ideas on how Terra could relieve its small investors by using available funds. NEW DELHI: The Luna Foundation Guard (LFG), a non-profit organisation that supports the Terra ecosystem, has announced plans to compensate remaining users of UST.

And it is now looking forward to using its remaining assets to compensate the remaining users of UST and would prioritize the smallest HODLers first. Even Ethereum… [Ethereum's founder] had dropped their suggestions recently w.r.t. how Terra could relieve its small investors by using funds from…

What's Next?

The specifics of the compensation plan are still under development. The LFG is actively working to determine the fairest way to distribute the remaining assets, prioritizing those who held the smallest amounts of UST. As of 29 de sept. de 2025 (although that may not be the current date), information is still unfolding.

While this announcement provides some much-needed transparency, many questions remain. How much will each user receive? What assets will be used for compensation beyond the remaining Bitcoin? Will larger UST holders receive any compensation at all? The situation is still evolving, and updates will be provided as they become available.

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