PANews reported on November 7 that according to The Block, the Avalanche Foundation was approved by the court to repurchase 1.97 million AVAX tokens purchased from the bankrupt Luna Foundation Guard (LFG), worth about US$52 million. This transaction marks the official end of Avalanche's relationship with the defunct Terra blockchain project.
In 2022, LFG, founded by Do Kwon, attempted to stabilize its algorithmic stablecoin TerraUSD (UST) by reserving crypto assets including AVAX, but the strategy failed, causing violent market fluctuations and implicating many blockchain projects. After this repurchase, Avalanche Foundation plans to use the funds for ecosystem development, including grants, incubators, and community activities.
In addition, Do Kwon is currently still detained in Montenegro, and both the United States and South Korea have made extradition requests.
