BPOI Banner
Three Arrows Capital Liquidators Sue TerraForm Labs for $1.3 Billion: Report Three Arrows Capital Liquidators Sue TerraForm Labs for $1.3 Billion: Report

Three Arrows Capital Liquidators Sue TerraForm Labs for $1.3 Billion: Report

Three Arrows Capital (3AC), the defunct crypto hedge fund, has its liquidators pursuing a $1.3 billion lawsuit against TerraForm Labs, the bankrupt digital assets company co-founded by Do Kwon.

This legal action is part of ongoing efforts to recover funds for 3AC’s creditors following the fund’s collapse.

3AC Liquidators Pursue TerraForm Labs

The Three Arrows Capital (3AC) liquidators are alleging that TerraForm Labs manipulated the market for Luna and TerraUSD, which led to artificially inflated prices for these tokens.

This manipulation, they claim, induced 3AC to invest heavily in these assets before they were wiped out. The collapse of these tokens not only erased 3AC’s investment but also caused substantial losses in the fund’s other digital holdings.

In January 2022, 3AC acquired $190 million worth of Luna as part of a broader $1 billion deal, which included investments from other firms. However, a massive sell-off of TerraUSD just a few months later triggered a sharp decline in both TerraUSD and Luna, severely depleting the value of 3AC’s investment.

By the end of April 2022, 3AC’s Luna holdings were valued at approximately $462 million, but by May 14, that value had plummeted to just over $2,700. Simultaneously, the net value of 3AC’s other digital assets dropped by about $858 million.

TerraForm, which filed for Chapter 11 bankruptcy in January, is currently in the process of liquidation after being found liable for fraud earlier this year. However, the amount of money that can be recovered still remains uncertain.

3AC’s Legal Struggles Intensify

Once a prominent figure in the crypto hedge fund industry, Three Arrows Capital (3AC) saw its downfall closely following the collapse of LUNA. In the aftermath, a British Virgin Islands court appointed liquidators from the consulting firm Teneo to recover assets in an effort to repay the hedge fund’s creditors.

This lawsuit against TerraForm Labs is just one of several actions the liquidators have initiated, as they are also pursuing claims against 3AC’s founders, Su Zhu and Kyle Davies.

Meanwhile, sources familiar with the situation revealed that Zhu has been attempting to offload at least one of his prestigious “good-class bungalows” over the past few weeks amid the company’s ongoing liquidation process.

Notably, following the crash of the LUNA project, TerraForm’s co-founder Do Kwon was arrested in Montenegro last year. He now faces charges in both the United States and his home country, South Korea.

SPECIAL OFFER (Sponsored)

Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER 2024 at BYDFi Exchange: Up to $2,888 welcome reward, use this link to register and open a 100 USDT-M position for free!

Source link

Wayne Jones

https://cryptopotato.com/three-arrows-capital-liquidators-sue-terraform-labs-for-1-3-billion-report/

2024-08-13 19:16:39

bitcoin
Bitcoin (BTC) $ 93,619.08 1.70%
ethereum
Ethereum (ETH) $ 3,291.59 0.05%
tether
Tether (USDT) $ 0.997594 0.01%
xrp
XRP (XRP) $ 2.15 3.03%
bnb
BNB (BNB) $ 673.68 3.13%
solana
Solana (SOL) $ 183.30 1.64%
dogecoin
Dogecoin (DOGE) $ 0.306148 1.68%
usd-coin
USDC (USDC) $ 0.998965 0.04%
staked-ether
Lido Staked Ether (STETH) $ 3,280.65 0.28%
cardano
Cardano (ADA) $ 0.868171 1.68%
tron
TRON (TRX) $ 0.247617 1.15%
avalanche-2
Avalanche (AVAX) $ 35.82 2.97%
chainlink
Chainlink (LINK) $ 22.26 2.17%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,915.99 0.35%
the-open-network
Toncoin (TON) $ 5.38 0.37%
shiba-inu
Shiba Inu (SHIB) $ 0.000021 0.76%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 93,403.03 1.79%
sui
Sui (SUI) $ 4.15 2.01%
stellar
Stellar (XLM) $ 0.349133 1.65%
polkadot
Polkadot (DOT) $ 6.88 0.10%
hedera-hashgraph
Hedera (HBAR) $ 0.262607 1.97%
weth
WETH (WETH) $ 3,292.35 0.05%
leo-token
LEO Token (LEO) $ 9.34 0.10%
bitcoin-cash
Bitcoin Cash (BCH) $ 434.84 1.91%
hyperliquid
Hyperliquid (HYPE) $ 25.61 18.78%
uniswap
Uniswap (UNI) $ 13.30 3.19%
litecoin
Litecoin (LTC) $ 99.93 0.34%
pepe
Pepe (PEPE) $ 0.000017 1.11%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,478.66 0.02%
near
NEAR Protocol (NEAR) $ 5.03 0.31%
ethena-usde
Ethena USDe (USDE) $ 0.99685 0.15%
bitget-token
Bitget Token (BGB) $ 4.03 2.10%
usds
USDS (USDS) $ 1.00 0.53%
aptos
Aptos (APT) $ 9.06 1.74%
aave
Aave (AAVE) $ 330.30 11.60%
internet-computer
Internet Computer (ICP) $ 9.96 1.11%
crypto-com-chain
Cronos (CRO) $ 0.1516 2.80%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.470308 0.83%
mantle
Mantle (MNT) $ 1.16 0.29%
ethereum-classic
Ethereum Classic (ETC) $ 25.96 0.60%
vechain
VeChain (VET) $ 0.045208 0.08%
render-token
Render (RENDER) $ 7.00 0.89%
whitebit
WhiteBIT Coin (WBT) $ 24.34 0.27%
monero
Monero (XMR) $ 189.18 1.34%
dai
Dai (DAI) $ 0.999123 0.04%
mantra-dao
MANTRA (OM) $ 3.49 4.17%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.26 0.77%
bittensor
Bittensor (TAO) $ 443.72 2.05%
arbitrum
Arbitrum (ARB) $ 0.752346 1.39%
filecoin
Filecoin (FIL) $ 4.87 0.60%