Three Arrows Capital liquidators seek $1.3 billion in damages from TerraForm Labs From Bits.media

The consulting firm Teneo, which acts as a liquidator for Three Arrows Capital, alleges that TerraForm Labs and its co-founder Do Kwon manipulated the market for the Luna token and the TerraUSD stablecoin, misleading investors and artificially reducing the value of the asset – before the date. the price of coins went down.

Liquidators reported that Three Arrows Capital bought $190 million worth of Luna tokens in January 2022. However, a massive selloff of TerraUSD stablecoin a few months later caused the value of both TerraUSD (dollar-pegged) and Luna to drop. By the end of April 2022, Three Arrows owned $462 million in Luna, but by May 14, the price of those coins had fallen to $2,700. The incident not only wiped out Three Arrows’ investment in tokens, but caused significant losses in other assets. Against this background, the value of Three Arrows’ other digital assets also fell by around $858 million.

In early August, the Court of Appeal of Montenegro agreed with the decision of the Podgorica High Court to extradite Do Kwon to South Korea, where they want to try the entrepreneur on criminal charges related to the collapse of TerraForm Labs. However, the Terraform Labs co-founder’s expansion to Korea was again suspended following a report by the Supreme Court Panel and a petition from the State Attorney General’s Office.

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