Upbit Operator Distances Itself from Terra-LUNAC ‘Investment’, Says It Swapped Coins for Bitcoin

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Dunamu, the operator of Upbit, South Korea’s biggest crypto exchange, has moved to distance itself from connections with Terraform Labs’ terra (previously LUNA, now – LUNAC) – dismissing notions that its management “may have invested directly” in the Terra network, and labeling reports as “clearly false.”

And while previous reports had claimed that a Dunamu subsidiary had invested a large chunk of its founding capital into LUNAC tokens, only to sell the coins off in February last year, the firm stated that it had not liquidated the coins for cash, but had instead swapped them for bitcoin (BTC).

In an official notice on its website, Dunamu said that it still holds all of the BTC it obtained in the 2021 trade. As reported last week, South Korean media outlets noted that Dunamu established a firm called Dunamu & Partners in March 2018. A month later, this new firm bought 20 million LUNAC (formerly LUNA) tokens, paying around USD 0.12 per coin.

Song Chi-hyung, who is also Dunamu’s Founder and Chairman, was listed as an executive director in official Dunamu & Partners’ documents. Kim Hyeong-nyeon, Dunamu’s Vice President, was also registered as an executive director.

Song and Kim stepped down from these roles shortly after the subsidiary’s founding.

Dunamu claimed, however, that neither Dunamu nor its management team were “involved in or exercised any influence over” Dunamu & Partners’ decision to make a LUNAC investment decision, but were “only” made aware of the investment through an investment report.