Billion

Teneo

Liquidators of the bankrupt cryptocurrency hedge fund Three Arrows Capital (3AC) are pursuing at least $1.3 billion from Terraform Labs, the defunct digital asset company co-founded by Do Kwon. 
This claim stems from the significant losses 3AC suffered following the collapse of Terraform’s TerraUSD and Luna in 2022. 
According to court documents, the liquidators allege that Terraform Labs encouraged 3AC to purchase Luna and TerraUSD by manipulating the market, which artificially inflated the value of these assets before their subsequent collapse. The fallout not only wiped out 3AC’s investment in these assets but also led to substantial losses across its other holdings. 
3AC, once a prominent name in the cryptocurrency hedge fund sector, fell apart shortly after the collapse of Luna and TerraUSD, alongside several other major cryptocurrency firms. The British Virgin Islands court later appointed liquidators from the consulting firm Teneo to recover similar amounts from 3AC’s founders, Su Zhu and Kyle Davies, as well as other entities to settle the fund’s debts. 
In April, a jury <a href="https://www.unlock-bc.com/113726/terra-luna-founder-do-kwon-faces-imminent-extradition-to-the-u-s/" class="ek-link">convicted </a>Terraform Labs and Kwon of fraud in a lawsuit brought by the U.S. government over the collapse of Luna. 
The liquidators stated that 3AC acquired Luna for $190 million in January 2022 as part of a larger $1 billion deal involving other investment firms. A massive sell-off of TerraUSD months later led to a drastic decline in the value of Luna. 
The post <a href="https://www.unlock-bc.com/127058/3ac-targets-terraform-labs-for-1-3-billion-in-crypto-losses/">3AC Targets Terraform Labs for $1.3 Billion in Crypto Losses</a> appeared first on <a href="https://www.unlock-bc.com">UNLOCK Blockchain</a>.

3AC Targets Terraform Labs for $1.3 Billion in Crypto Losses

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