The South Korean fintech startup that operates digital asset management and trading services reportedly had over US$20 million, or 99% of its client funds, liquidated amid the Terra-LUNA collapse in May.
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Fast facts
- The startup’s trading unit had placed client funds on a short position on LUNA Classic (LUNC), previously known as LUNA. When that bet went wrong, 99% of client funds, or over US$20 million, got liquidated, a Seoul Economic Daily report said.
- Uprise offered artificial intelligence-based robo advisory trading services to high net worth clients apart from an income-generating product. It claimed the robo advisor was less prone to risks than human-led investments.
- The loss reportedly includes 3.9 billion Korean won, or about US$3 million worth of Uprise’s own funds. The firm is working on a compensation plan, Uprise told local media.
- The startup had gathered 46 billion won, or around US$35 million worth of investments from major South Korean venture capitals such as blockchain venture fund Hashed, Kakao Ventures and KB Investments.
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