Brazilian crypto exchange Nox Bitcoin has announced that it will use 620.000 Brazilian reals to reimburse UST holders ahead of the peg, according to the crypto news portal Portal do Bitcoin.
Previously, Nox Bitcoin allowed users to stake USTs for a profit like many other exchanges around the world. The exchange reportedly staked tokens on behalf of its clients via the Anchor protocol, offering up to 20% APY to stake the stablecoin.
Nox Bitcoin CEO Joao Paulo Oliveira said: “Customers trust us to stake them, and we understand that their trust is worth more than anything else, so we will refund these users.”
Only investors who bought UST prior to the de-peg will receive a refund for their tokens. for example If the investor has 1 UST and the current currency is $0.06, Nox will deposit another $0.94 to your account in USDT.
However, the reason for refunding users is probably not solely for gaining popularity among customers. As FatMan from the Terra Research Forum commented,
“Brazil’s consumer protection laws are pretty strict. and will penalize businesses that lie to their customers or misrepresent their risks. Let’s take a look at how the courts of many countries will reach the same conclusion in the coming days. Because there will be a lawsuit against the web trading involved. All of this is not over yet.”
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