Crash

April

Billion

Teneo

The liquidators of the collapsed crypto hedge fund, Three Arrows Capital (3AC), are pursuing a $1.3 billion claim against TerraForm Labs, a bankrupt digital assets company co-founded by Do Kwon. 
This claim is tied to the losses 3AC suffered after the 2022 crash of TerraUSD and Luna tokens that were central to TerraForm’s operations.&nbsp; 
According to <a href="https://finance.yahoo.com/news/three-arrows-liquidators-seek-1-182037889.html" target="_blank" rel="noreferrer noopener nofollow">Yahoo Finance</a>, 3AC claims TerraForm Labs manipulated the market to inflate the value of TerraUSD and Luna, which made 3AC to invest heavily in these tokens. In January 2022, 3AC bought $190 million worth of Luna as part of a $1 billion investment deal with other companies.&nbsp; 
However, a few months later, the value of TerraUSD and Luna crashed, causing 3AC’s Luna holdings, which were worth $462 million at the end of April 2022, to drop to just $2,700 by mid-May. The hedge fund’s other digital assets also lost about $858 million in value during this time. 
Three Arrows Capital, once a major player in the crypto industry, collapsed shortly after the TerraUSD and Luna crash, along with several other large crypto companies.&nbsp; 
The British Virgin Islands court appointed liquidators from the consulting firm Teneo to manage 3AC’s assets and recover money for its creditors. The $1.3 billion claim against TerraForm is part of these efforts. 
But TerraForm Labs is already facing legal challenges. Earlier this year, a U.S. court found TerraForm and Do Kwon guilty of fraud related to the Luna crash. The company filed for bankruptcy in January and is now preparing to liquidate.&nbsp; 
Do Kwon, who was arrested in Montenegro last year, is facing possible <a href="https://www.cryptotimes.io/2024/08/08/montenegros-supreme-court-postpones-do-kwon-extradition-again/" target="_blank" rel="noreferrer noopener">extradition to South Korea</a> and charges in both the U.S. and his home country. 
However, It is still unclear how much of the $1.3 billion claim 3AC will be able to recover from TerraForm Labs.

3AC Seeks $1.3 Billion from TerraForm Labs Over 2022 Luna Crash

The Crypto Times

Other articles published on Aug 12, 2024

Weekly Article Recap: 8/05-8/09

Binance Hit with $86M Tax Demand by Indian Authorities Over GST Registration

Riot Platforms Offers Lowest Stock Compensation Per Employee Among Competitors

Bitcoin Mining Stock CleanSpark Is Sliding Monday: What's Going On?

Restore the Republic Token $RTR Crashes 95% After Trump Family Denial

Nasdaq and BlackRock Propose Options for Spot Ethereum ETF: SEC Decision Expected by April 2025

Join our free newsletter for daily crypto updates!