The liquidators of the defunct cryptocurrency hedge fund Three Arrows Capital (3AC) have filed a $1.3 billion claim against Terraform Labs, the company behind the failed Terra ecosystem. The claim is part of the ongoing legal proceedings surrounding 3AC's collapse, which occurred in June 2022 after the TerraUSD stablecoin and LUNA token lost most of their value.
The liquidators allege that Terraform Labs and its co-founder Do Kwon are responsible for the losses incurred by 3AC due to its exposure to the Terra ecosystem. The $1.3 billion claim represents the estimated value of 3AC's investments in various Terra-related projects, including the TerraUSD stablecoin and LUNA token.
The filing of this claim marks a significant development in the ongoing efforts to recover funds for 3AC's creditors and investors. It also highlights the broader legal and regulatory challenges facing the cryptocurrency industry as it grapples with the aftermath of major failures like the Terra ecosystem collapse.Read more on Decrypt
Three Arrows Capital Liquidators File $1.3B Claim Against Terraform Labs
