The legal challenges of bankrupt Terraform Labs are about to get complicated. This is because former crypto hedge fund giant Three Arrows Capital (3AC) has made a claim of $1.3 billion on the firm. 3AC has labeled the former of being behind its implosion in 2022.

The Growing Terraform Labs Challenges

The claims from the Su Zhu founded hedge fund hinges on the losses it suffered as a result of the collapse of TerraUSD and LUNA. The implosion of these tokens at the time impact 3AC severely owing to its exposure to both assets. According to liquidators for the hedge fund, the Do Kwon-led firm at the time inflated the valuation of these assets in a manipulative way.

It is not uncommon for bankrupt firms to explore ways to recall funds. Recently, Celsius Network sued Tether over Bitcoin transaction fraud. Tether has refuted the $2.4 billion Bitcoin fraud claims levied against it.

This story is developing, please check back for updates!!!

The post Just In: 3AC Demands $1.3 Billion From Bankrupt Terraform Labs appeared first on CoinGape.

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Filed under: News - @ August 12, 2024 7:05 pm