During the Terra-LUNA collapse in May, the South Korean fintech startup that provides digital asset management and trading services reportedly had over $20 million, or 99% of its client funds, liquidated.
The trading division of the start-up has invested client money in a short position on LUNA Classic (LUNC), formerly known as LUNA. According to a Seoul Economic Daily article, after that wager failed, over $20 million in client money were liquidated, or 99% of them.
Along with an income-generating product, Uprise provided high net worth clients with artificial intelligence-based robo advise trading services. It stated that the robo adviser presented fewer risks than assets managed by humans.
3.9 billion Korean won, or around $3 million in US dollars, of Uprise’s own money was apparently included in the loss. According to Uprise, a compensation strategy is being developed by the company.
Major South Korean venture capital firms such blockchain venture fund Hashed, Kakao Ventures, and KB Investments contributed 46 billion won, or around US$35 million, to the startup.