LUNA crash has caused ripples throughout the crypto industry irrespective of the penetration in countries. So much so that the South Korean Government is looking at crypto exchanges to hold crypto exchanges liable for their failure to protect traders from the LUNA crash.
According to reports from Newspim, the South Korean ruling party has planned an urgent meeting today with officials from the top five crypto exchanges. These include Korbit, Gopax, Upbit, Coinone, and Bithumb. In total, the Terra collapse has caused a loss of $40 billion across the crypto industry.
Reports suggest that crypto exchanges will have to pay for the lossesincurredd by the investors f. The reason for that is that they failed to implement enough traders’ protection and stop clients’ losses during the collapse.
Chairman of the parliament’s special virtual assets committee, Yoon Chang-Hyeon, stated in a Facebook post, saying:
“we will check [the exchanges’] investor protection measures.”
Previously, he had demanded an urgent meeting in the National Assembly regarding the LUNA crash. Furthermore, he has expressed concerns regarding crypto exchanges for their conduct during the crash. According to them, crypto exchanges didn’t close UST and LUNA trades due to high trading volumes.
As of now, South Korea’s financial authority will look into all 34 crypto-related companies. These include eight crypto wallets, 26 crypto exchanges and security management agencies. Finally, they’ll evaluate if crypto exchanges implemented necessary customer protection tools and anti-money laundering systems.
Besides this, the CEO of TerraForm Labs, Do Kwon is already on the probe or running Ponzi manoeuvres through advertising unfeasible outcomes on UST deposits via Anchor protocol.