The Luna Foundation Guard (LFG) has transferred around $95 million in cryptocurrency to a new wallet to enhance fund security.

Blockchain data from Arkham Intelligence revealed that LFG moved 1.974 million Avalanche (AVAX) tokens, worth $71.2 million, and 39,500 BNB, valued at $23.5 million, to a new address identified as "0x13463Aab3ECcE77Cfd8Cc28fA498a5F9DB242e27" on May 31. The wallet received its first test transactions from LFG on May 17.

Despite these transfers, LFG’s reserve dashboard indicates that the foundation still holds about $161 million, comprising $71.36 million in AVAX, $45 million in UST, $23.38 million in BNB, and roughly $21 million in BTC, among other assets.

LFG is a non-profit focused on the Terra ecosystem and faced significant scrutiny in 2022 for its Bitcoin transactions during the Terra algorithmic stablecoin UST crash.

LFG explained in a May 28 social media post that it was transferring assets from multi-sig wallets to a more secure direct custody solution to enhance security. The new transactions align with this plan.

This move follows a reported agreement between the US Securities and Exchange Commission (SEC), bankrupt Terraform Labs, and its former CEO, Do Kwon. Details of the settlement remain unclear, but Judge Jed Rakoff has requested supporting documents from both parties by June 12. In April, a US District Court found Terraform Labs and Kwon guilty of civil fraud.