Uprise Investment Fund LUNA became the latest cryptocurrency firm to be hit by the crash, with more than $20 million in funds liquidated while short-trading assets during the crash in May.
- According to a local news report on Tuesday (July 6, 2022), Uprise suffered heavy losses after entering a short sell position for LUNA using client funds.
- As a result of violent market volatility, the company lost approximately 26.7 billion won ($20.4 million), accounting for 99% of client funds. Uprise won 3.9 billion ($2.9 million) of his own wealth.
- In the meantime, Uprise is trying to compensate customers, a spokesperson for the firm said:
“It is true that the unforeseen large volatility in the market has resulted in loss of client assets. We plan to finalize the report on the virtual asset business very soon.”
- The Korean firm runs a crypto trading desk that invests clients’ funds in the cryptocurrency futures market. Uprise also has an ETF investment platform called Iruda.
- Backed by South Korean venture capital giants such as Kakao Ventures and KB Investments, it uses “AI-infused robo advisor technology” for its crypto trading.
- Meanwhile, the crash of LUNA, Terra’s native coin back in May, has affected many cryptocurrency companies that have been exposed to the fallen coin.
- One of such firms, struggling crypto hedge fund Three Arrows Capital (3AC), saw its $200 million investment in LUNA devaluing after the token’s price plummeted.
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