3AC Liquidators Demand $1.3 Billion from Terraform Labs for Luna Collapse
CryptoNewsTerminal Staff12 Aug, 2024
3AC Liquidators Demand $1.3 Billion from Terraform Labs for Luna Collapse
In the wake of the Terra-Luna debacle, the liquidators of defunct Three Arrows Capital (3AC) are demanding $1.3 billion from Terraform Labs, the company behind the collapsed cryptocurrencies. According to Bloomberg, the liquidators argue that Terraform Labs "inflated the price of LUNA and UST to entice purchases," leading to significant losses for 3AC and other investors. 3AC reportedly held $462 million worth of LUNA in April 2022, which had plummeted to just $2,700 by May 14. Terraform Labs filed for Chapter 11 bankruptcy in January, and the proceedings are ongoing. It remains uncertain how much, if anything, 3AC will be able to recover from Terraform Labs. The latest development underscores the ongoing fallout from the Terra-Luna collapse, which sent shockwaves through the crypto industry and resulted in billions of dollars in losses.
