Upbit Decides to Use 9.5 Billion KRW in Fees to Support Luna Classic Investors

[Asia Economy Reporter Lee Jung-yoon] Domestic cryptocurrency exchange Upbit has decided to use the Luna Classic transaction fees generated during the recent crash to support investors.

According to the cryptocurrency industry on the 1st, Upbit posted a notice titled "Notice on the Use of Luna Classic (LUNC) Transaction Fees" the day before. Upbit stated, "As the price of Luna Classic continued to fall, many digital asset investors both domestically and internationally suffered significant investment losses," and added, "Upbit feels a moral responsibility beyond legal liability for investment losses and has therefore decided to use the Luna Classic transaction fees generated during the recent Luna and Terra incident period to support investors."

According to Upbit, the transaction fees earned from 0:00 on the 11th of last month, when Luna Classic was designated as a watch-listed item, until 12:00 noon on the 20th amounted to 239.13025970 Bitcoin, which is approximately 9.4576 billion KRW based on Upbit’s closing price on the 30th. Luna Classic was listed on Upbit’s BTC market, where trading is only possible with Bitcoin, but trading support was terminated from 12:00 noon on the 20th of last month.

Furthermore, Upbit stated, "The usage and method of Luna Classic transaction fees will not be decided solely by Upbit, but will be discussed together by a separate committee composed of internal and external experts."

Earlier, Korbit was the first to announce that it would use Luna Classic transaction fees as resources for investor protection.

Korbit decided to use all transaction fees generated after designating Luna Classic as a watch-listed item on the 25th of last month for investor protection. From 12:00 noon on the 10th to 6:00 p.m. on the 24th of last month, after the watch-list designation, the trading volume of Luna Classic was about 14.8 billion KRW, and the fee revenue was approximately 10 million KRW. The fee revenue is expected to increase further until the scheduled end of trading support on the 3rd. Korbit plans to use these funds to demonstrate the exchange’s responsible stance and to provide resources for compensating investor damages related to Luna Classic and cryptocurrencies in general.

At the time, Korbit CEO Oh Se-jin said, "As investor anxiety is growing due to the Luna price crash, this decision was made to quickly resolve the cause of the anxiety and fulfill our social responsibility," adding, "We will contribute to creating a more desirable virtual asset investment culture by using the fee revenue for investor protection."