Three Arrows Demands $1.3 Billion From Bankrupt Terraform Labs
The brains behind the controversial TerraUSD and LUNA coins, TerraForm Labs, are now said to be the target of an eye-popping $1.3 billion lawsuit filed by Three Arrows Capital (3AC) in efforts to recoup damages from the catastrophic breakdown of the digital assets in May of 2022. Related Reading: Tornado Cash Founder Appeals Conviction, Seeks […]
The brains behind the controversial TerraUSD and LUNA coins, TerraForm Labs, are now said to be the target of an eye-popping $1.3 billion lawsuit filed by Three Arrows Capital (3AC) in efforts to recoup damages from the catastrophic breakdown of the digital assets in May of 2022.
Once a cryptocurrency titan hedge fund, it is now to face the consequences of its investments, gearing up to hold TerraForm accountable for its financial woes.
3AC liquidator seeks $1.3B from Terraform Labs
Teneo, the liquidator for the defunct cryptocurrency hedge fund Three Arrows Capital (3AC), is seeking over $1.3 billion from Terraform Labs, according to Bloomberg. Terraform, co-founded by Do Kwon, is responsible for the collapse…
— CoinNess Global (@CoinnessGL) August 13, 2024
The Fall Of A Crypto Giant
Three Arrows acquired $190 million tokens of LUNA in January this year and that seemed to have spelled the beginning of its problems. The value of 3AC’s stake in LUNA soared to $462 million by April 2022 as the market boomed.
Weeks later, though, this whole ecology collapsed. Just one day after LUNA’s value plunged, the shares 3AC had were worth just $2,700.
The fallout of 3AC resonated throughout the entire cryptocurrency market. Aside from that, many other firms thus had to suffer severe losses, and the aftermath saw a wave of bankruptcies.
Shortly after the crash, 3AC itself was declared bankrupt by a British Virgin Islands court, which appointed liquidators from Teneo to manage its remaining assets. What was once a glorious reputation now lay in tatters, and there was a need to recover all the losses of this hedge fund.
Three Arrows: Legal Wars Ahead
The filing of 3AC’s $1.3 billion claim against TerraForm Labs is indeed an important step towards the recovery of part of its lost wealth. Unfortunately, the result of this resulting court dispute remains unclear. With its January 2024 bankruptcy filing, TerraForm Labs is in a crisis of its own.
What's Your Reaction?
