Fallen Singapore-based crypto hedge fund Three Arrows is seeking to recover losses from TerraForm Labs caused by the 2022 crash of TerraUSD and Luna tokens.
Liquidators of Three Arrows Capital are seeking $1.3 billion from TerraForm Labs, according to a «Bloomberg» report citing court documents, claiming substantial losses caused by the 2022 crash of TerraUSD and Luna tokens as well as investments in other holdings.
The liquidators said that Three Arrows acquired $190 million worth of Luna in January 2022 as part of a larger $1 billion deal that included other investment firms. At the end of April 2022, the crypto hedge fund held about $462 million in Luna before its value fell to around $2,700 by May 14. The net value for other digital holdings also fell by approximately $858 million during the same period.
Meanwhile, TerraForm filed Chapter 11 in January and is preparing to liquidate. Founder Do Kwon, who was arrested in Montenegro last year, has been ruled for extradition to South Korea where he faces charges. In the US, he recently reached a settlement deal with the Securities and Exchange Commission.
