Brazil’s Nox Bitcoin Exchange to Reimburse Victims of Terra UST Crash

Nox Bitcoin, a Brazil-based crypto exchange, has announced that it would be reimbursing all of its users who lost their Terra UST holding on its platform, according to a report from Portal do Bitcoin.

The report stated that Nox would be paying each user the differences between UST’s current value and $1. This means that the exchange would be reimbursing each user over $0.90 to make their UST holding whole again.

This development is not only going to set a new precedent in the crypto space but also garner a new level of goodwill towards the exchange from the Terra community.

The firm’s CEO, João Paulo Oliveira, revealed that the exchange would be spending at least R$ 620,000 ( approximately $127,000) to reimburse those affected.

Oliveira says that the gesture is being made to retain the confidence of its users because

Customers trusted us to make a gift and we understand that their trust is much more valuable than anything else. We will reimburse these users by taking away the expenses we would have elsewhere, such as marketing.

The CEO, however, stated that the reimbursement would only be available to those who bought the coin before its crash.

He also added that the role of the exchange is not to “prevent their customers from exposing themselves to risk and protecting them from eventual loss of money,” as that would be the same as “preventing them from making money.”

Terra’s LUNA Situation is Unclear

The Terra community faces an uphill battle to revive the network as the controversies surrounding its proposals continue to rise.

The Terra community has said that the Do Kwon-backed proposal was changed midway through the votes, while another vote to burn LUNA failed due to technical reasons.

Also, Terra parent company, Terraform Labs, has been facing a number of lawsuits over the failure of its ecosystem has increased the pressure on the community.

Earlier today, Do Kwon revealed that the closure of the firm’s Korean office was purely a coincidence and was not tied to the crash of the Terra ecosystem.