Terra investors in India lost big. Now they face the taxman
Terra investors around the world lost billions of dollars when the algorithmic-stablecoin project crashed but they recovered a small part of their bets when a new token was distributed as compensation. Investors in India aren’t as fortunate. Because the country’s tax system is punitive to crypto investing, TerraUSD and Luna token holders who got the new coin — known as Luna 2.0 — in a so-called airdrop face a double whammy. They could be taxed as much as 30 percent of the value of tokens received and they won’t be able to offset any gains in the new token against losses from the previous one, tax experts said. There were over 160,000 investors that held Luna on the exchange on May 9 and by May 15 the number grew by 77 percent in India, according to Rajagopal Menon, vice president at Binance-owned WazirX. Take a look
