Cryptocurrency exchange Recapbit lost $1.6 billion on investments in the digital asset Terra Classic (LUNC), the value of which collapsed in early May.
We invested $3M in Terra through Recapbit Labs in 2018. We received 50 million LUNA and just kept the coins. Theoretically, the amount of our losses did not exceed $1.6 billion, and this is normal,” said Binance CEO Changpeng Zhao.
Recapbit promoted staking Terra Classic and TerraClassicUSD (USTC) stablecoins under the guise of a “safe way to make money”. However, the company’s clients who blocked digital assets suffered huge financial damage because LUNC and USTC fell in price by about 99%.