Brazilian cryptocurrency exchange Nox Bitcoin has indicated that they are making 620,000 Brazilian real, equivalent to approximately EUR 120,000, available to reimburse UST holders. The exchange will refund the difference between the current price of UST ($0.08) and the price the stablecoin should have ($1).
Users get money back from UST crash
Nox Bitcoin facilitated the staking of UST for its traders. Nox Bitcoin reportedly in turn invested these coins in Anchor Protocol because this party APY of 20% offered† However, it was also included that the exchange would have to pay its users back in the event of a crash.
Only investors who bought the stablecoin before the stablecoin lost its fixed value will get their money back. Both LUNA and UST are still on Nox Bitcoin despite LUNA is down over 99% and UST is down 90%.
Joao Paulo Oliveira, the CEO of Nox Bitcoin, said:
†Customers trust us to make the right decisions for them with staking and we understand that their trust is far more valuable than anything else.” he explains† “We’re going to refund these users minus the costs we would have elsewhere, such as marketing.†
While it is of course very nice of the exchange to do this, some think there is more to it than just charity. FatMan, a user on the Terra Research Forum said:
†Brazil’s consumer law is quite strict and penalizes companies that lie to customers or represent false risks. Let’s see how many courts come to the same conclusion in the coming days as lawsuits against exchanges pour in. All this is far from over.”
Bitvavo also compensates users
Not only this Brazilian party compensates its users, but also a party from its own soil has opted for this. Bitvavo had decided to temporarily pause trading due to the LUNA crash. They did this as the network was down and liquidity was very low. The Bitvavo users were compensated for the fact that they couldn’t do anything with their LUNA. They get the EUR value of their LUNA before trading was discontinued. This compensation is credited to their wallet.