**Avalanche Foundation to Repurchase 1.97M AVAX Tokens from Terraform Labs**

The Avalanche Foundation is set to buy back 1.97 million AVAX tokens from Terraform Labs for $45.5 million. These tokens, currently valued at $57.4 million, were initially sold to the Luna Foundation Guard (LFG) in April 2022, just before Terra's blockchain collapse.

- The repurchase agreement, filed on Oct. 9 in a Delaware Bankruptcy Court, is awaiting approval.

- The move aims to prevent LFG from violating token use restrictions and avoids complications from bankruptcy liquidation.

- Terraform Labs noted the settlement will cut litigation costs and ensure recovery close to the current market value of the tokens.

This agreement follows Terraform Labs' recent court-approved plan to wind down operations after a $4.5 billion settlement with the SEC.