October 2, 2022

According to the South Korean newspaper Seoul Economic, a domestic cryptocurrency investment fund called Uprise has lost almost all of its users’ assets due to a crash in Terra (LUNA) futures trading in mid-May.

Uprise claims to use automated trading strategies with artificial intelligence (AI) integration to invest in cryptocurrencies on behalf of clients, the majority of whom are wealthy and institutional investors.

Nonetheless, the system failed to assist Uprise during the LUNA-UST crash in May, wiping out all LUNA short positions and costing the user 26.7 billion won (approximately $20 million). This sum is said to account for 99 percent of the assets managed by Uprise for customers. Uprise also lost $3 million in the process of “bottom-fishing” LUNA.

A representative from the fund confirmed that they intend to compensate affected customers. Uprise is an investment fund supported by a number of large Korean corporations, including Kakao Ventures and Hana Bank. Uprise held a Series C funding round in December 2021, raising $18.3 million.

Uprise is the most recent company to acknowledge being impacted by the demise of LUNA – UST, which resulted in the bankruptcy of two crypto organizations, investment fund Three Arrows Capital and lending platform Voyager. Celsius, BlockFi, Babel Finance, Genesis Trading, Blockchain.com, Deribit, Kyber Network, CoinFLEX, Vauld, KuCoin, CoinLoan, and more names were also impacted by the ensuing crisis.

Meanwhile, the Korean government is still gathering information for the LUNA-UST investigation, as well as numerous other legal actions by the disgruntled investor against Terraform Labs and CEO Do. Kwon. In his latest statement at the end of June, Mr. Do Kwon was confident that he could still rebuild the project through the new version of Terra 2.0.

Summited by HotQA