Upbit Announces Committee Setup to Refund Terra Investors

Upbit Announces Committee Setup to Refund Terra Investors
  • Korbit made an estimated 27 million won in commissions at the end of the term.
  • As of May 30th, the refund fee amounted to almost $9.5 billion won by Upbit.

The whole Terra ecosystem crashed in May, making it a very terrible month. Upbit, the leading virtual asset exchange in Korea, said back in May that it would refund investors the 9.5 billion won that it had earned in fees during the so-called “Luna Crash” of that month. Korbit, another major exchange, announced its intention to utilize transaction fees from any LUNA-related activity that happened after May 10 to fund client security measures. Upbit is forming a committee to overlook the refund process.

At that time, the firm explained:

“The money will be used to support customers that faced losses due to crypto deposit mistakes and phishing scams.”

The underlined promises, however, have not been met by any kind of exchange; no official action has been done as of yet. The same was also confirmed by an inquiry conducted by the Korean news organization SBS Biz. As reported by SBS, Korbit made an estimated 27 million won in commissions at the end of the term. The exchange is “thinking particular ways to utilise it,” although this is still in the early stages.

During the crisis the exchange stated:

“We feel moral responsibility beyond legal responsibility for investment losses. Upbit will not decide how and where the Luna transaction fee will be used but will form a separate committee composed of internal and external experts to discuss it together.”

It’s worth noting that the commission itself will choose the methodology to be used in determining the fee. As of May 30th, the refund fee amounted to almost $9.5 billion won. However, SBS calculates that figure to be a deflated 7.3 billion won as of 10 August.

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