3AC liquidators alleged that Terraform Labs misled the Singaporean hedge fund about the stability of tokens in the Terra ecosystem.
Liquidators of the collapsed cryptocurrency hedge fund Three Arrows Capital (3AC) are seeking damages from the bankrupt crypto firm Terraform Labs for the losses it suffered following the collapse of the Terra ecosystem in May 2022.
3AC liquidators filed a $1.3 billion claim in the Terraform Labs’ bankruptcy in Delaware federal court on Aug. 9, according to a legal news service Law360 report.
In a proof of claim form, 3AC liquidators alleged that Terraform Labs misled the Singaporean hedge fund about the stability of tokens in the Terra ecosystem, including Terra’s algorithmic stablecoin TerraUSD (UST) and the UST-tied token Terra Luna (LUNA).
