Just-In: South Korea May Sue Crypto Exchanges Over Terra Crash

Many prospects have come under the consideration of global cryptocurrency regulators since the brutal Terra crash. South Korean Government and agencies are trying to get the possible reason behind this debacle.

In this bid, the ruling party of the nation held an emergency meeting to take further action over it.

S. Korea might sue crypto exchanges

According to reports, the representatives of Upbit, Korbit, Coinone, Bithumb, and Gopax were summoned for a meeting over the matter. Lee Seok-woo, CEO of Dunamu will be there at the gathering. Till there has been no confirmation came in from the crypto exchanges. However, as per expectations, the government will be holding exchange platforms accountable for the damages born by the investors caused by the Terra Luna crash. Meanwhile, this will also cover the loss incurred due to the delisting of the digital asset.

The exchanges might be held responsible for not halting LUNA transactions and ignoring investors’ protection during the crisis. Yoon Chang-Hyeon, head of the Virtual Assets Special Committee, mentioned that they would be checking the platform’s investor protection steps taken. Meanwhile, each Ministry might be showcasing its position on the regulatory framework over Digital Assets later after the meeting.

Crypto exchanges made most money out of crash

Earlier, Chang-Hyeon highlighted that every transaction helps the crypto exchanges to create a commission for the platforms. Upbit was the last among exchanges to stop trading for Terra’s LUNA and UST. While other exchanges like Korbit, Gopax and Coinone halted trading on May 10, 2022. The Bithumb did it on May 11, 2022. He noted that Upbit made almost 80% of the total share of generated commission income.

During the crash, Terra’s LUNA, native token and UST, stablecoin almost lost their complete value. Do Kwon, founder of Terra has proposed specific steps and plans to revive the chain. However, the investors have suffered a lot as around $40 Billion market capitalization of Terra’s assets crashed overnight.