In a major relief for investors who lost a fortune during the Terra-LUNA crisis the South Korean crypto exchanges Upbit and Korbit is going to reimburse the transaction fees as compensation. However, an inquiry revealed that there has been scant progress towards the realization of the promise.
As soon as the report of the inquiry was released, Upbit confirmed that it is forming a committee which will the fee amount and other compensations.
South Korean Exchanges Will Compensate Terra-LUNA Transaction Fees
The Terra-LUNA crash has eroded the wealth of many investors and it is very noble of South Korean exchanges including Upbit and Korbit to refund transaction fees and other charges suffered during the crash. Besides individual investors South Korean institutional and retail investors lose billions during the Terra-LUNA crash
After the crash when investors lost billions and the crypto sector was hit by a winter, exchange were severely indicted for promoting as well as marketing Terra’s UST stablecoin and LUNA ahead of the crash. Investigation by the South Korean government has revealed that there has been a steep rise in the issue of UST and LUNA tokens during the crash.
The investors had indicted the crypto exchange of profiting from transaction fees and other commissions and not blocking deposits and withdrawals of Terra tokens.
Taking into account the Upbit said “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.”
However, the amounts of refund are steadily declining. The Bitcoin (BTC) price dropped from the $30,000 level during the crash to below $23k. The fees are kept in Bitcoin wallets as per terms. The Terra-LUNA crash is a lesson and South Korean crypto exchanges are creating joint consultation body to preempt incidents similar to the Terra-LUNA crash.