The Avalanche Foundation has announced an agreement to repurchase all AVAX tokens sold to Luna Foundation Guard (LFG) before April 2022.
The buyback, totaling 1.97 million AVAX, is currently awaiting bankruptcy court approval.
In a statement shared on social media, the Avalanche Foundation explained the details of the move: “The Avalanche Foundation has negotiated an agreement to repurchase all AVAX tokens previously sold to Luna Foundation Guard (LFG) in April 2022 and is currently awaiting approval from the Bankruptcy Court.”
The Foundation stated that this action is intended to ensure that LFG does not violate the original agreement’s restrictions on the use of the tokens. It also aims to protect AVAX tokens from complications that may arise during a bankruptcy receivership. By repurchasing the tokens, the Avalanche Foundation intends to strengthen its own assets and thereby strengthen its capacity to support the continued growth and development of the Avalanche ecosystem.
If approved, this move will return 1.97 million AVAX tokens to the foundation, strengthening its ability to support future initiatives and expand the blockchain’s capabilities.
*This is not investment advice.