Three Arrows Capital Liquidators Are Seeking Damages from Terraform Labs

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The liquidators in charge of handling the assets of the now-defunct cryptocurrency hedge fund Three Arrows Capital (3AC) are seeking recompense from Terraform Labs for the financial losses incurred by the collapse of the Terra ecosystem in May 2022.

According to a report from legal news service Law360, 3AC’s liquidators have filed a claim for $1.3 billion in Terraform Labs’ bankruptcy case in Delaware federal court on August 9.

In their proof of claim form, the liquidators allege that Terraform Labs provided misleading information to the Singapore-based hedge fund about the stability of tokens in the Terra ecosystem.

These tokens included the algorithmic stablecoin TerraUSD (UST) and the UST-tied token Luna (LUNA). The liquidators, represented by Russell Crumpler and Christopher Farmer of Teneo Holding, claim that Terraform Labs advertised the tokens in a way that artificially inflated their value.

Louis Adams https://www.satoshihodler.com

I am an experienced crypto news writer. I have been in the industry for many years and believe this tech can bring financial freedom to everyone.