In 2022, the Avalanche Foundation sold 1.97 million AVAX worth $100 million at the time to Terra’s foundation before its collapse. It’s now buying it all back for $45.5 million.
The Avalanche Foundation plans to repurchase 1.97 million Avalanche tokens it sold to the Luna Foundation Guard (LFG) in April 2022, a month before the Terra blockchain ecosystem collapsed.
The foundation will buy the 1.97 million Avalanche AVAX
$28.78 tokens from Terraform Labs’ bankruptcy estate for $45.5 million, though the tokens are currently valued at $57.4 million on the market.
An Oct. 9 repurchase agreement and settlement filed in a Delaware Bankrupcy Court is now pending court approval, the Avalanche Foundation said in an Oct. 11 X post.
“This action ensures that LFG would not violate the original agreement’s restrictions on the tokens’ use and shields the tokens from the complexity of a bankruptcy trustee liquidation, while returning 1.97M AVAX to the Foundation’s holdings,” said the foundation, which backs the layer 1 blockchain Avalanche.
