Hassan Maishera
TL;DR
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The Avalanche Foundation has agreed to repurchase the AVAX tokens it sold to Luna Foundation Guard (LFG) in 2022.
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The deal is currently waiting for approval from the Bankruptcy Court.
Avalanche Foundation to Buyback AVAX Tokens From Terra’s LFG
The Avalanche Foundation announced over the weekend that it had reached an agreement to repurchase the AVAX tokens sold to the Luna Foundation Guard (LFG) in April 2022.
LFG, a Singapore-based nonprofit that supported the since-collapsed Terra ecosystem with its stablecoin UST and token LUNA, bought $100 million worth of AVAX tokens in 2022 to boost its reserves.
The Avalanche Foundation has negotiated an agreement to repurchase all AVAX tokens previously sold to the Luna Foundation Guard (LFG) in April 2022, which is now awaiting approval from the Bankruptcy Court.
— Avalanche Foundation 🔺 (@AvalancheFDN) October 11, 2024
This action ensures that LFG would not violate the original…
However, when the Terra ecosystem collapsed later that year, the LFG simply held the AVAX tokens. The Avalanche Foundation has now agreed to repurchase the tokens for an undisclosed amount.
The 1.97 million AVAX tokens are now worth around $58 million, a 42% decrease from the original $100 million spent by the LFG to acquire them. The deal will be completed once they get approval from the bankruptcy court in charge of Terraform Labs' estate.
At press time, AVAX is trading at $29.52, up nearly 2% in the last 24 hours.
