Brazilian exchange refunds TerraUSD (UST) at $1 for its clients

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Exchange brasileño reembolsa TerraUSD (UST) a $1 para sus clientes ¿Un nuevo precedente?

Y exchange of cryptocurrency in Brazil has taken the unprecedented step of investing its own money to refund customers their TerraUSD (UST) at full rate.

According to reports published on May 20 through local media, the exchange Nox Bitcoin has refunded all Headlines of UST at a rate of 1 dollar with USDT of Tether.

The report stated that the firm spent 620,000 reais (about $127,000) to reimburse all of its clients who lost money in the collapse of the Terra ecosystem.

“FatMan” from the Terra research forum commented that the move could set a precedent for exchanges around the world:

“This case can be used as a key precedent to argue that exchanges are liable for UST losses if unlawful misrepresentations were made.”

Source: Twitter

Terra back to a dollar for these lucky few

The exchange stated that it would repay the difference between the current UST rate and the dollar parity from which it crashed. This means that someone holding 100 UST at a price of $0.06 will get a refund of 94 USDT.

Nox Bitcoin CEO João Paulo Oliveira told the outlet that the firm is not required to bear the losses of clients who invest in specific coins on its platform. Nevertheless, decided to intervene to ensure the trust of their customers. He added:

“Customers have trusted us and we understand that their trust is much more valuable than anything else. We are going to reimburse these users less the expenses that we would have in other places, such as marketing.”

Nox Bitcoin also provides services of betting such as the one widely used by UST, Anchor Protocol. The DeFi protocol offered up to 20% APY on the betting of UST and it was largely seen as instrumental in its collapse due to these unsustainable returns.

Oliveira added that they are waiting to see what happens next regarding the inclusion of UST and LUNA. “The Terra ecosystem may no longer exist,” he stated before adding:

“But the cryptocurrency market is unpredictable and anything can happen, including the eventual revival of the Terra ecosystem.”

UST drops further

At the time of writing this article, UST had fallen another 23% on the day to trade at $0.056according to CoinGecko.

The ‘unstable currency’ has lost 94% of its peg and is unlikely to return to it without major intervention, such as a hard fork Terraform Labs.

LUNA has experienced a similar amount and was priced at $0.00010793 with a market cap of $688 million and 6.5 billion tokens in circulation at the time of writing.

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