Two South Korean cryptocurrency exchanges, Upbit and Korbit, offered to reimburse investors for trading fees they paid during Terra-LUNA. However, word seems to be lost as no moves have come so far.
South Korean exchanges to pay Terra-LUNA transaction fees
During the Terra-LUNA collapse, institutional and individual investors in South Korea suffered billions of dollars in losses. Upbit and Korbit, two South Korean exchanges, chose to reimburse aggrieved investors transaction fees and other costs. According to local media, Upbit and Korbit have not yet announced the committee that will determine the amount to be refunded and other commissions, about three months from now.
Investors lost billions of dollars in the Terra-LUNA disaster
Crypto exchanges have come under fire for advertising LUNA and UST unaware of the crash. In fact, research by the South Korean government showed that exchanges profited significantly during the UST and LUNA price decline. Investors bought unaware of what would happen to capitalize on falling prices. Meanwhile, Terra remained at the top of the 24-hour trading volume for days. It was the stock markets that benefited more than that. According to the data, the combined payout from the two exchanges in May is over $30 million:
In addition to legal responsibility, we also feel moral responsibility for investment losses. Upbit will form a separate group of internal and external experts to research where and how the Luna transaction fee will be used, not to decide where and how it will be used.
Meanwhile, Bitcoin price dropped from $30,000 to just under $23,000 during the crash. Thus, it destroyed all hopes for the November summit and caused a 70% loss from the summit. As a result, exchanges will pay Terra victims lower on a BTC basis. The fees to be refunded according to the agreements are currently held in Bitcoin wallets.
Upbit prepares to refund transaction fees
To prevent accidents like the Terra-LUNA crash, major South Korean cryptocurrency exchanges are also preparing to set up a collective advisory group. A proposal for the joint advisory body has yet to be finalized. Meanwhile, following the report’s release, Upbit has publicly announced that “the commission will be launched soon.”
Investigations into TerraForm Labs and its creator in South Korea South Korean prosecutors conducted “search and seizure” operations in more than 15 locations, including cryptocurrency exchanges and co-founder Daniel Shin’s home and workplace.
cryptocoin.comAs you follow, Terra founder Do Kwon is under travel restriction. Daniel Shin and other Terra officials are also followed on all trips.
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