In May, South Korean digital asset management platform Uprise liquidated a short position in Terra’s LUNA token, losing about 99% of client funds. Reported by the Seoul Economic Daily.

The Uprise market uses an artificial intelligence system to trade the futures market. Back in May, the robot-advisor asset exposed as the price of LUNA dropped from $60 to nearly zero. An unexpected increase in the price of the token led to the liquidation of the position.

As a result, the venture lost 26.7 billion won (~$21 million) or about 99% of client funds, as well as 3.9 billion won (~$3 million) of its own assets.

The firm suspended trading services but did not report the loss to either customers or investors.

Uprise was funded by blockchain firm Hashed, the venture capital arm of tech giant Kakao, banks KB and Shinhan, and other investors. In total, the startup has raised 46 billion won (~$35 million).

Most of Uprise’s trading service clients are wealthy individuals and companies that invest in crypto assets. The company stressed that it has “sufficiently informed” users about the risks of losing funds.

The firm also offers income farming services that continue to operate.

“Customer assets suffered due to unexpectedly high market volatility. We plan to complete a report on our virtual asset business soon,” an Uprise spokesperson said.

Recall that the blockchain company Hashed lost $ 3.5 billion due to the collapse of Terra.

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