Three Arrows Capital Files $1.3 Billion Claim Against Terraform Labs
The legal troubles for Terraform Labs are escalating, with Three Arrows Capital (3AC) filing a massive $1.3 billion claim against the company. 3AC blames Terraform Labs for its downfall in 2022.
3AC, which had invested significantly in LUNA and TerraUSD, claims that the collapse of these cryptocurrencies led to severe financial losses.
The hedge fund bought approximately $190 million in LUNA early in 2022, but a sharp decline in TerraUSD and LUNA soon followed, causing 3AC’s holdings to plummet from $462 million to just over $2,700 within a month. The hedge fund’s liquidators allege that Terraform Labs, led by Do Kwon, engaged in misleading practices concerning asset valuations.
READ MORE: U.S. City Opens New Office to Educate on Bitcoin
Bankrupt firms often seek to recover funds, and Celsius Network is no exception. The company has sued Tether, accusing it of fraudulent Bitcoin transactions totaling over $3.5 billion. Tether has dismissed these allegations, asserting that the Bitcoin transactions were conducted at the request of Celsius Network.
Amid these developments, Do Kwon, the former head of Terraform Labs, is still awaiting extradition to South Korea. The Supreme Court of Montenegro has recently postponed his extradition, following a legal request from the State Prosecutor’s Office.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
