Luna Foundation Guard (LFG), the non-profit organization holding Terra's bitcoin reserves, confirmed on Monday morning that it had sold over 80,000 BTC over the past week to acquire TerraUSD (UST) in an attempt to defend its crumbling U.S. dollar peg.

"Consistent with its non-profit mission & focus on the health of the Terra ecosystem, beginning on May 8, when the price of $UST began to drop substantially below one dollar, the Foundation began converting this reserve to $UST," LFG said in a Twitter thread.

Singapore-based LFG works to cultivate demand for Terra's stablecoins and "buttress the stability of the UST peg and foster the growth of the Terra ecosystem." It was in charge of acquiring and holding bitcoin to build the UST reserves.

The foundation said it began transferring bitcoin funds to a counterparty "to enable them to enter trades with the Foundation in large size & on short notice."

That counterparty received north of 50,000 BTC in exchange for over 1.5 billion UST.