Impact

April

Terra

Billion

<ul> 
 <li><strong>3AC claims $1.3B losses from LUNA’s collapse, blaming Terraform Labs’ manipulative practices.</strong></li> 
 <li><strong>LUNA value plummeted, decimating 3AC’s $462M investment to just $2.7K in weeks.</strong></li> 
</ul>  
<p>As discussed in a previous CNF <a href="https://www.crypto-news-flash.com/terra-luna-bankruptcy-progress-shuttle-bridge-active-again-luna-tokens-to-be-burned/">post</a>, the Terra Luna Classic community is debating raising the burn tax rate from 0.5% to 1.5%. If increased, the burn tax would triple contributions to the community and oracle pools.</p> 
<p>Meanwhile, Three Arrows Capital (3AC) is asserting a $1.3 billion claim against Terraform Labs, accusing the firm of being responsible for its collapse in 2022. The hedge fund’s claim centers on significant losses incurred due to the failure of TerraUSD and LUNA.</p> 
<h2 id="strong-impact-of-terrausd-and-luna-collapse-strong"><strong>Impact of TerraUSD and LUNA Collapse</strong></h2> 
<p>According to a source, 3AC alleges it purchased up to $190 million worth of LUNA at the beginning of 2022 as part of a larger $1 billion deal with other investment firms. A subsequent massive selloff of TerraUSD led to a sharp decline in LUNA’s value, severely impacting 3AC.</p> 
<h2 id="strong-broader-bankruptcy-and-legal-context-strong"><strong>Broader Bankruptcy and Legal Context</strong></h2> 
<p>Reflecting our previous <a href="https://www.crypto-news-flash.com/terra-luna-classic-contemplates-increasing-burn-tax-to-1-5-could-it-revive-token-prices/">discussion</a> on Terra Luna’s bankruptcy progress: Shuttle Bridge Active Again, LUNA Tokens to Be Burned. From holding $462 million worth of LUNA in April 2022, the firm’s holdings fell to just over $2,700 by mid-May.</p> 
<p><a href="https://www.crypto-news-flash.com/terra-luna-classic-contemplates-increasing-burn-tax-to-1-5-could-it-revive-token-prices/">Also</a>, the hedge fund’s court filing accuses Terraform Labs, led by Do Kwon, of inflating asset valuations in a manipulative manner, resulting in substantial financial losses.</p> 
<p>At the time of writing, Terra (LUNA) is at <strong>$0.3307</strong>, with an increase of <span style="color: #008000;"><strong>0.25%</strong></span> in the past day and <span style="color: #008000;"><strong>5.18%</strong></span> in the past week. See the LUNA price chart below.</p> 
<p><span data-sheets-root="1"></span></p>
<div class="cryptoboxes" id="mcw-431029" data-realtime="on">
 <div class="mcw-chart mcw-chart-light" data-font="inherit" data-coin="terra-luna" data-symbol="LUNC" data-currency="USD" data-rate="1.000268" data-type="chart" data-view="day" data-theme="light" data-smooth="true" data-areacolor="" data-bgcolor=""></div>
</div>

LUNA News: 3AC Seeks $1.3 Billion in Legal Claims Against Bankrupt Terraform Labs

Table of Contents

Crypto News Flash

Other articles published on Aug 13, 2024

Uniswap Foundation Reports $36.81M in Reserves and $3.22M in New Grants for Q2

Tornado Cash Developer, Alexey Pertsev, Seeks Funds For Legal Defense

Donald Trump Launches Bitcoin-Themed Sneakers, Quickly Sell Out

Pennsylvania Professor Jeremy Siegel Urges Immediate 0.75% Rate Cut Amid Global Market Crash

ZAN and Mysten Labs Partner to Advance Web3 Infrastructure Development

Liquidators seek $1.3b from TerraForm Labs over 3AC losses

Join our free newsletter for daily crypto updates!