My experince here is as a distressed debt advisor for 20 years before moving to crypto. I have been part of many cases like this over the years and am familiar with the process from the perspective of getting the money due to the creditor. LFG’s obligations are not clear to me, but it is clear to me that it is part of the joint and common enterprise to run Terra that is now insolvent, and if not, assets transferred to LFG are within the clawback window under US law. Do Kwon is part of that joint enterprise. If a case were filed, I would ask the lawyers to include him and all associated individuals and entities, including the validators, and let them try and argue their way out of the case. If Do Kwon weren’t individually part of this enterprise, whatever he received would likely be clawed back to the bankruptcy estate. As for jurisdiction, it seems like this would happen in perhaps South Korea, Singapore, possibly China, and the United States. Anywhere with jurisdiction over a party or a clawback target will likely need to be involved. Many countries will recognize foreign bankruptcy actions with minimal oversight. I would want the lawyers to decide this. Still, I suspect some parties that could be named as debtors are subject to US jurisdiction and think starting one there could be an easy start and that could be consolidated later with international proceedings. Unfortunately, there may be no way to obtain recovery without clawbacks, and you need to go to court for that, and the clock is ticking on putting them on notice. Think weeks/months, not years.
Thank you for the information.
I think we are putting the cart before the horse here.
As long we don’t know for sure if LFG has any money - any plan won’t work.
Also, in terms of snapshots - I believe taking multiple snapshots might help, like -
- 1 day before depeg.
- at the time of depeg
- 1 day after the depeg etc.
This might help eliminate people who already exited the system or entered after the depeg, and could prioritize the ones who stayed for more time.
I don’t see a perfect solution and anything LFG does ll make many people unhappy as they have limited resources (whatever they have).
But I agree with making smaller accounts whole, or maybe pay everyone max of $250k like FDIC does. That might make a lot of people whole or atleast not bankrupt anymore.
Also, I don’t see any merit in people having to buyback and deposit UST again for this as some of them might have no money left after the whole episode. Plus if someone sold at $0.90, they can easily buy back at $0.10 and will end up getting paid.
People have to accept that some people will get paid more and some less. There is no perfect way to offset exact losses for everyone.
Alright 
What is the difference here to make? Luna is already almost 7 trillion. People staked Luna to support the network to enable UST to begin with. It’s just conveniently ignored by selfishness.
Is that because you are one of the 90%? lol
Good thing that nonsense proposal wont go anywhere further than the voting page.
Thank you for your effort!
My situation is same like you! All of my family’s saving was put on Anchor to profit 19.5%… Plus I had Luna for spot too. For last 6 days I couldn’t eat nor sleep, just feeling like my heart is completely broken… I put my parents retired money and now I don’t know how I come up with some solutions…
But I would like to thank you for your message that we have to stand strong and find the solution together!
they’ve unlocked it now mate, go and check the site
You are missing a point. People also staked Luna to secure the network to begin with. Huge commitment for giving access to the fund up to 24 days. There would not a UST to begin with without the chain first.
stop using too much emojis
U are the first speculator
U bought UST backed by nothing
Backed by volatile assets
Stop your drama
Your trash proposal is “let me exit first from this mess”
Any owner of the UST is part of the network
Some bought usdt at 0.7 0.8
U dont put the rules who is the supporter and who is not!
Name ur proposal to
Selfish greedy way to exit alone lol
@FatMan can we include ust providers not only in LPs but also in mirror protocol and aperture finance?
All ust users should be treated equally!
Thank you very much for pushing hard for this proposal, it is really the best outcome, for the largest number of UST users and for bringing back some trust to any future of the forked terra ecosystem!
People don’t seem to get that a Luna price point of $0.01 recollateralizes the whole damn network at ~$65bn USD, and then burning any of the remaining tokens act as a counterinflationary lever that cranks it up further,
UST are like savings account, and people put their saving into it. Luna is stock and people put their speculative money into it. I am not lawyer, but when UST is “marketed” as “stable” but not stable, it definitely looks illegal to me.
If someone can point out the exact document stating UST is a form of debt, I will agree with this approach. Otherwise, it is just a coin too. To me, UST is like value stock, Luna is like growth, plus providing security to the system. Simple analogy.
If validators would be included and they have to “claw their way out of the case” then crypto as a whole is lost.
If you market something as sugar but it is actually poison, I am sure the court is waiting for you.
Totally agree, we need an easy but not simplistic solution.
Already how much is the reserve if it still exists?
Obviously, there will be no perfect solution.
The goal is to make the most people satisfied without having the impression that a non-negligible minority is tempted to go further.
To avoid this it is for this reason that the ceiling must be around 250K as this would avoid too many people coming to claim.
Agree