The Avalanche Foundation has announced that it has reached an agreement to repurchase all AVAX tokens sold to the Luna Foundation Guard (LFG) in April 2022. The agreement is currently pending approval from the bankruptcy court.
The repurchase of 1.97 million AVAX tokens will ensure that LFG does not violate the original agreement’s restrictions on the tokens’ use and will shield the tokens from the complexities of a bankruptcy trustee liquidation.
“This action further enhances the Foundation’s ability to support the ongoing growth and development of the Avalanche ecosystem,” said the Avalanche Foundation. Here’s the full official statement:
“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. 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. This further enhances the Foundation’s ability to support the ongoing growth and development of the Avalanche ecosystem.”
