Customers will receive a $1 refund from Nox Bitcoin
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According to the report, the cryptocurrency brokerage firm paid 620,000 Reais ($127,000). The amount was paid to compensate all of the exchange's customers who lost money due to the Terra ecosystem's collapse.
For Those Who Are Lucky, UST Is Back At $1
The exchange announced that it would refund customers the difference between the current UST rate and the dollar peg from which it collapsed. As a result, a holder of 100 UST at $0.06 will receive a 94 USDT refund.
According to Nox Bitcoin CEO Joo Paulo Oliveira, the company is not liable for any losses incurred by consumers who invest in various currencies on the platform. Nonetheless, they chose to step in to protect their customer's trust.
He proceeded, saying,
"Clients have trusted us with staking, and we understand that their trust is much more valuable than anything else. As a result, we will reimburse these users minus the expenses we'd have elsewhere, like marketing."
The announcement came as a breath of fresh air for the Bitcoin community. The Nox Bitcoin exchange's judgment, on the other hand, reflects Brazilian customer protection legislation. Staking services, such as Anchor Protocol, are also available on the exchange, which UST heavily utilizes. The DeFi protocol, which offered up to 20% APY on UST staking, mainly was blamed for the system's demise due to these unsustainable returns. People are now waiting to see what will happen with the UST and LUNA listings.
"Probably, this won't exist shortly," Oliveira said before adding, "but you never know what might happen in a volatile crypto market."