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Uprise Investment Fund became the latest cryptocurrency company to be affected by the LUNA crash, with over $20 million worth of funds getting liquidated while short-trading the asset during its crash in May.
- According to a local news report on Tuesday (July 6, 2022), Uprise suffered huge losses after entering a short sell position for LUNA using clientsâ funds.
- As a result of the violent market volatility, the company lost about 26.7 billion won ($20.4 million), amounting to 99% of customersâ funds. Uprise also lost 3.9 billion won ($2.9 million) of its own assets.
- Meanwhile, Uprise is looking to compensate customers, with a spokesperson for the firm stating:
âIt is true that damage to customer assets has occurred due to unexpected great volatility in the market. We plan to finalize the report on virtual asset business soon.â
- The Korean firm runs a crypto trading desk that invests clientsâ funds in the cryptocurrency futures market. Uprise also has an ETF investment platform called Iruda.
- Uprise, backed by South Korean venture capital giants like Kakao Ventures and KB Investment, uses âAI-infused robo advisor technologyâ for its crypto trading.
- Meanwhile, the crash of Terraâs native coin LUNA that occurred back in May has caused a contagion affecting several cryptocurrency companies exposed to the fallen token.
- One of such firms, struggling crypto hedge fund Three Arrows Capital (3AC), saw its $200 million investment in LUNA devalue following the tokenâs price plunge.
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