On-chain data shows that Terra’s (CRYPTO: LUNA) $3.5 billion Bitcoin (CRYPTO: BTC) reserves have been depleted entirely.
What Happened: A report from blockchain analytics firm Elliptic followed the movement of Terra’s BTC reserve after the collapse of its stablecoin TerraUSD (CRYPTO: UST).
When UST first lost its peg last weekend, Terra said it would deploy $750 million from its Bitcoin reserves as a loan to market makers to help stabilize the pegging mechanism.
See Also: IS TERRA (LUNA) DEAD?
Elliptic found that 22,189 BTC worth $750 million was sent from the Luna Foundation Guard (LFG) address to a new address at the time. Later that evening, LFG deployed another 30,000 BTC worth $930 million to that same address.
“Within hours the entirety of this 52,189 BTC was subsequently moved to a single account at Gemini, the US-based cryptocurrency exchange - across several bitcoin transactions,” stated the report.
The remaining 28,205 BTC in Terra’s reserves was then transferred to Binance on May 10.
At the time of writing, it was unclear whether these funds were being held on crypto exchanges or had been sold off.
“We are currently working on documenting the use of the LFG BTC reserves during the de-pegging event. Please be patient with us as our teams are juggling multiple tasks at the same time,” stated Terra founder Do Kwon on Twitter (NYSE:TWTR).
Price Action: According to data from Benzinga Pro, LUNA was trading at $0.000261 at press time. Bitcoin was trading at $30,200, up 2.27% over 24 hours.
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