What Really Happened To Terra Labs $3.5B Bitcoin Reserves?

The 80,394 BTC were purchased by the Luna Foundation Guard to promote the growth of the Terra ecosystem. Finding out what happened to them is actually pretty easy.

As the value of UST began to drop on May 9th, the Luna Foundation Guard (LFG) claims it moved to protect the UST peg with its $3.5B of Bitcoin (BTC) reserves.

This began with the LFG moving 22,189 BTC (worth $750M) to crypto exchange Gemini. Later that same day, a further 30,000 BTC (valued at $930M) we’re sent to the same exchange wallet address.

This left 28,205 BTC in Terra’s reserves.

Those remaining reserves were moved in a single transaction to crypto exchange Binance on May 10th.

These transactions are verifiable via blockchain, as illustrated below.

What were unable to verify, however, is what happened to the Bitcoin reserves once they landed in the exchange wallet. It’s essentially impossible to prove that the Bitcoin reserves were used to purchase UST and protect its peg — or that they were not moved outside of Gemini and Binance and into private wallets.

But you know who can tell us the truth to what happened to the $3.5B of Bitcoin held by Terra?

Binance and Gemini.