Brazil-based cryptocurrency exchange Nox Bitcoin has announced that it will spend 620,000 Brazilian reals to reimburse TerraUSD (UST) holders. The exchange will compensate for the difference between the current value of the TerraUSD (UST) (about $0.04) to ensure $1 for every 1 TerraUSD (UST) held by each TerraUSD (UST) holder.

Nox Bitcoin allowed users to stake their TerraUSD (UST) to earn a return like many exchanges around the world. The exchange has reportedly staked tokens on behalf of its clients through the Anchor Protocol (ANC), which offers up to 20% APY for staking stablecoins.

Joao Paulo Oliveira

Nor is there any insurance or guarantee that would require the exchange to reimburse its owners. Nox Bitcoin CEO Joao Paulo Oliveira said:

   “Our customers have trusted us with staking, and we know their trust is more valuable than anything else. We will reimburse these users for what we spend elsewhere, such as marketing.”

Only investors who purchased TerraUSD (UST) before the de-peg event will be refunded for their tokens. Both Terra (LUNA) and TerraUSD (UST) are still listed on Nox Bitcoin, with Terra (LUNA) down over 99% and UST over 90%.

Joao Paulo Oliveira believes that Nox Bitcoin's mission is not to "prevent customers from putting themselves at risk" because it also means "to prevent them from making money."


Joao Paulo Oliveira believes that Nox Bitcoin's role is to develop quality projects that its clients can invest in. However, the rationale for refunding its users may not be just about creating goodwill towards them among their customers.

FatMan of Terra Research Forum thinks that the Nox Bitcoin cryptocurrency exchange took such a step because of Brazilian laws.

   "Brazil's consumer law is very strong and punishes businesses that lie to customers or misrepresent the risks."