CoinShares Reveals It Lost $21.45M to UST crash, Dunamu Refutes Claims of Netting $105M Profit from LUNC Investment

CoinShares Reveals It Lost $21.45M to UST crash, Dunamu Refutes Claims of Netting $105M Profit from LUNC Investment

CoinShares, the blockchain investment firm announced that they lost $21.45 million to the UST crash and said it was unclear how Dunamu had managed to net a profit of around 100M USD off their LUNC ICO.

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CoinShares Reveals It Lost $21.45M to UST crash, Dunamu Refutes Claims of Netting $105M Profit from LUNC Investment

CoinShares Reveals It Lost $21.45M to UST crash, Dunamu Refutes Claims of Netting $105M Profit from LUNC Investment

 

The number of institutional investors who have suffered losses as a result of their exposure to Terra assets, which plummeted in the second half of last month, has continued to rise. CoinShares, an asset management, said this week that its finances had been severely impacted. In South Korea, financial behemoth Dunamu refuted claims that it profited handsomely from a prior investment in LUNC, formerly LUNA.

The Terra collapse cost CoinShares as much as $21 million.

CoinShares, a digital asset management business, released its yearly financial report on Tuesday, revealing that the UST depeg resulted in a loss of $21.45 million. The business had no direct exposure to Terra (LUNA), which hemorrhaged value during the height of the crisis, according to CEO Jean-Marie Mognetti, who called the loss as a “humbling lesson.”

However, the asset manager managed a book that included Terra’s now-defunct algorithmic stablecoin. The loss is unsurprising given the company’s extensive participation in the crypto and decentralized financial sectors. Although Mognetti acknowledged that the poor returns will have an impact on the firm’s performance this quarter, he assured customers that the harm would not spread to other capital markets activity.

“While this certainly has an effect on the group’s performance in the second quarter, this loss has had no influence on any of our extra capital markets operations, nor has it had any impact on the hedging and collateralization of any of the group’s ETPs.”

He also indicated that the company has taken steps to prepare for a similar incident in the future. Mognetti addressed the timing of the announcement, stating he didn’t want to declare the loss until the conclusion of the current quarter. CoinShare isn’t the only institutional investor that has suffered losses as a result of the UST crash. Delphi Digital also revealed on May 18 that its $10 million investment in Luna Foundation Guard (LFG) had gone in a report.

Dunamu denies making a $100 million profit on a Luna Classic venture.

Dunamu, a South Korean fintech startup, has explained that it did not make $105 million from its exposure to the now-defunct Terra assets. Dunamu, the company behind Upbit, the country’s biggest crypto trading platform, has firmly denied the claims made by local media last week.

According to the sources, the company’s investment arm bought roughly 20 million LUNC tokens for The reports alleged that the company’s investment arm, one month after being founded in March 2018, acquired about 20 million LUNC tokens when they traded at $0.13. The subsidiary spent $2.61 million, more than 60% of the firm’s initial capital, to complete the purchase but sold the whole chest last February. In the notice shared on Tuesday, Dunamu said it didn’t have any input or influence on the investment play..13 one month after it was created in March 2018. The subsidiary paid $2.61 million on the acquisition, accounting for more over 60% of the company’s starting capital, but sold the whole chest in February. Dunamu stated it had no involvement or influence on the investment play in a notification released on Tuesday.

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The parent firm exchanged LUNC for 2081.8500 Bitcoins and received a 25% discount on the exchange’s then-market pricing. Dunamu stated that the exchanged Bitcoin is still in the firm’s control, and that local officials have prohibited business organizations from swapping crypto for local cash. After deducting tax and other charges, the corporation said that the investment resulted in an unrealized profit of $33 million.

Terraform Labs is accused of laundering $4.8 million via a Korean shell company.

Following Terra’s collapse, accusations of fraud against Do Kwon and his company Terraform Labs have continued to mount. According to a story published by KBS News on Monday, the blockchain business conspired with a blockchain consulting firm to launder $4.8 million.

According to the article, Terra and the blockchain startup operated under the moniker Kernel Labs, according to a former engineer at the firm. According to the news site, the National Tax found a 6 billion won ($4.8 million) transaction to the firm that was documented under other costs. In a Twitter discussion, Terra Research Forum member FatMan Terra confirmed linkages between the two firms.

Local tax officials claimed this week that the Luna Foundation Guard had strange dealings with Kernel Labs and was fined for tax fraud last year. This isn’t the first time Do Kwon has been accused of anything. The Terra leader was previously accused of fraud by the pseudonymous user using Mirror Protocol and more recently Anchor Protocol.

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