The collapse of Terra (LUNA) and its stablecoin UST sent shockwaves through the crypto world, leaving many asking: Terra's 2 Billion Bitcoin Reserves: Where Did It All Go?

Do Terra (LUNA) has been aggressive about filling up its reserves with trusted cryptocurrencies to serve as a backup for its stablecoin UST. This has evolved over time to a massive $3.5 billion Bitcoin (BTC) reserve intended to maintain the peg of UST.

The Luna Foundation Guard (LFG), Terra's official peg defenders, played a central role. In order to shore up UST’s price, the Luna Foundation Guard (LFG) deployed over $2 billion in its newly formed bitcoin (BTC) reserves. But where did that bitcoin ultimately end up?

After the Terra fallout, a great number of people on forums and social media asked the question: “Where is LFG’s Bitcoin reserve?” 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. LFG reportedly has only 313 BTC remaining. So, what happened to the rest?

On-chain data shows that Terra’s Bitcoin reserves have been depleted entirely. Billions in bitcoin, bought as a reserve by the Luna Foundation Guard (LFG), a foundation set up by the failed Terra blockchain, is now untraceable after being moved to various exchanges.

The transparency, or lack thereof, surrounding the movement of these funds has fueled speculation. A number of former Terra users, including one of the loudest, have accused him of extracting $2.7 billion from Terra’s reserves, a claim Kwon flatly denies. “In terms of…” clarity, the destination of all those bitcoin remains a point of intense debate and scrutiny within the crypto community.