binance promoted terra before billion collapse


In 2018, the exchange invested $3 million in the project, for which it received 15 million LUNA tokens. According to Fortune sources, when LUNA reached its all-time high in value in early April, Binance’s investment was valued at $1.6 billion.

It turned out that the founders had decided to close the firm at a shareholders’ meeting as early as April 30. A few days before the fall of the coin itself.

It also turned out that the Binance exchange lost more than a billion dollars because of the collapse of the Terra ecosystem.

However, Changpen Zhao, the founder of the exchange, is not very enthusiastic about the repayment plan – he does not believe that Do Kwon will be able to effectively eliminate the consequences of the incident, as the reserves of the Luna Foundation Guard organization are almost depleted in an attempt to maintain the parity of the UST to the dollar. Although his company’s losses have exceeded the $1.5 billion mark, Zhao said that traders and investors should be compensated first.

The South Korean prosecutor’s office will check the Terra project for signs of a pyramid scheme, the local Yonhap news agency reported citing its sources. Law enforcers are investigating whether they can initiate a criminal case against Anchor Protocol, which offered TerraUSD holders 20% per annum.

The investigation came a day after lawyers announced plans to sue Terra CEO Do Kwon. The South Korean law firm LKB & Partners plans to have the property of the head of the project seized.