Upbit to Establish Virtual Asset Monitoring Center Using LUNC Fees

Upbit's New Virtual Asset Monitoring Center

Upbit, South Korea's top cryptocurrency exchange, has announced plans to establish a "Virtual Asset Monitoring Center" using fees generated from Luna Classic (LUNC) transactions. The fees, totaling 239.13025970 Bitcoin (approximately $4.5 million), will be allocated to short-term and mid-to-long-term plans aimed at protecting investors and addressing the aftermath of the LUNA collapse.

Allocation of LUNC Fees

The fees, earned between May 11 and May 20, will be divided into two main categories:

• Short-term plans: Damage relief for investors affected by the LUNA 1.0 collapse and funding for an incident log that analyzes the cause of the incident.
• Mid-to-long-term plans: The establishment of a fair market monitoring organization to enhance investor protection.

Impact of the LUNA Collapse

The implosion of Terra's algorithmic stablecoin (UST) and LUNA in May caused a global crypto market meltdown. UST plummeted to $0.006218, while LUNA dropped by 1,634% to $0.00001675. This event shook investor confidence and highlighted the need for stronger oversight in the digital asset market.

Legal Developments Involving Do Kwon

Do Kwon, founder of the ill-fated LUNA 1.0, is now facing legal consequences. A South Korean court has issued an arrest warrant for Kwon and five others for violating the country's capital markets laws. This comes as the crypto industry continues to grapple with the fallout from the Terra ecosystem's collapse.

Upbit's initiative to create a Virtual Asset Monitoring Center represents a proactive step toward rebuilding trust and ensuring greater transparency in the cryptocurrency market.